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Section 1: 8-K (8-K - Q1 2018 EARNINGS RELEASE)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 7, 2018
MVB Financial Corp.
(Exact name of registrant as specified in its charter)
 
West Virginia
000-50567
20-0034461
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
301 Virginia Avenue, Fairmont, WV
26554-2777
(Address of principal executive offices)
(Zip Code)
(304) 363-4800
(Registrant's telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02.    Results of Operations and Financial Condition.

On May 7, 2018, MVB Financial Corp. (NASDAQ: MVBF) issued a press release announcing its financial results for the quarter ended March 31, 2018. A copy of the release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, is hereby furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, (the "Securities Act") or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits.

99.1Press release of MVB Financial Corp. dated May 7, 2018






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 
MVB Financial Corp.
 
By
/s/ Larry F. Mazza
 
 
Larry F. Mazza
 
 
President and Chief Executive Officer
Date: May 7, 2018






EXHIBIT INDEX


Exhibit Number
 
Description
 
Exhibit Location
 
 
 
 
 
 
Press Release of MVB Financial Corp. dated May 7, 2018
 
Filed herewith



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1 - Q1 2018 EARNINGS RELEASE)

Exhibit
Exhibit 99.1

393372022_mvbfinanciallogo.jpg
 
MEDIA CONTACT
 N E W S R E L E A S E
Amy Baker
VP, Corporate Communications
 
abaker@mvbbanking.com
 
844-682-2265

MVB Financial Corp. Reports First Quarter 2018 Earnings

Strongest Quarter from Continuing Operations in MVB's History

FAIRMONT, W.Va., May 7, 2018 – For the three months ended March 31, 2018, MVB Financial Corp. (the “Company”) (NASDAQ: MVBF) reported net income of $2.6 million, or $0.24 basic and $0.23 diluted earnings per share compared to $1.6 million, or $0.14 basic and diluted earnings per share for the same period in 2017.

For the three months ended March 31, 2018, loans increased $51.2 million or 4.6% from December 31, 2017, which represents an annualized increase of 18.4%. The increase in loans has been driven by our expansion in northern Virginia, as well as, the addition of commercial lenders throughout our markets. In addition to the increase in loan volume during the quarter, loan yields increased 6 basis points. The Company continues to capitalize on disruptions in the market to expand both the lending and deposit teams. The locked Mortgage pipeline increased $61.8 million from December 31, 2017, while over the same period noninterest expense decreased by $975 thousand. The Company continues to monitor expense control and evaluate opportunities for efficiencies.

“If you heard my comments as part of MVB Financial’s Closing Bell Ceremony on March 28, 2018, you know one thing for certain: I’m excited! First quarter 2018 was our strongest quarter of earnings from continuing operations in MVB history. I’m also excited about our trading volume. MVB’s daily trading volume was 1,000 shares not too long ago, and now we’re trading nearly 20,000 shares a day,” said Larry F. Mazza, CEO and President, MVB Financial.

“I’m excited because the Mortgage pipeline exceeded budget expectations for the first quarter, and the pipeline is strong looking ahead to the next quarter. I’m also excited about our robust loan performance in the first quarter, which is due to organic growth and the strategic addition of commercial lenders in our key lending areas. I believe that we have a long runway to grow, and we will through excellent execution, hard



Exhibit 99.1

work, organic growth and M&A. Our team is ready for the challenge. We are focused, motivated and grateful for our families, teammates, Board of Directors, shareholders, communities and especially for our clients.”

FIRST QUARTER 2018 HIGHLIGHTS

Loans of $1.2 billion as of March 31, 2018, increased $51.2 million, or 4.6%, from December 31, 2017, and increased $80.4 million, or 7.5%, from March 31, 2017.
Assets of $1.6 billion as of March 31, 2018, increased $47.2 million, or 3.1%, from December 31, 2017, and increased $147.6 million, or 10.3%, from March 31, 2017.
Deposits of $1.2 billion as of March 31, 2018, remained flat from December 31, 2017, and increased $17.4 million, or 1.5% from March 31, 2017. Noninterest-bearing deposits of $142.8 million increased $16.9 million, or 13.4%, from December 31, 2017, and increased $23.6 million, or 19.7%, from March 31, 2017.
Net interest income of $11.5 million for the quarter ended March 31, 2018, decreased $218 thousand, or 1.9%, from the quarter ended December 31, 2017, and increased $1.2 million, or 11.2% from the quarter ended March 31, 2017.
Noninterest income of $9.0 million for the quarter ended March 31, 2018, decreased $1.1 million, or 11.0%, from the quarter ended December 31, 2017, and increased $215 thousand, or 2.4%, from the quarter ended March 31, 2017.
Noninterest expense of $16.7 million for the quarter ended March 31, 2018, decreased $975 thousand, or 5.5%, from the quarter ended December 31, 2017, and increased $422 thousand, or 2.6%, from the quarter ended March 31, 2017.

FINANCIAL DETAILS

Loans totaled $1.2 billion as of March 31, 2018, an increase of $51.2 million, or 4.6%, from December 31, 2017, and an increase of $80.4 million, or 7.5%, from March 31, 2017. The growth in loans is primarily attributable to organic growth and the addition of commercial lenders within the Company’s primary lending areas. The yield on loans was 4.68% as of March 31, 2018, an increase of 6 basis points from December 31, 2017, and an increase of 36 basis points from March 31, 2017. The increase in yields is driven both by Fed rate increases and a commercial focus on increasing loan yields. In connection with the Company’s core conversion in 2017, the Company implemented a CRM system that has provided better insight on loan pricing.




Exhibit 99.1

Deposits totaled $1.2 billion as of March 31, 2018, and remained flat from December 31, 2017, while increasing $17.4 million, or 1.5% from March 31, 2017. Noninterest-bearing deposits totaled $142.8 million as of March 31, 2018, or 12.4% of the total deposit base, an increase of $16.9 million, or 13.4%, from December 31, 2017, and an increase of $23.6 million, or 19.7%, from March 31, 2017. Noninterest-bearing deposits remain a core funding source for the Company. Management will continue to concentrate on balancing deposit growth with adequate net interest margin to meet strategic goals.

Net interest income for the quarter ended March 31, 2018, was $11.5 million, a decrease of $218 thousand, or 1.9%, from the quarter ended December 31, 2017, and an increase of $1.2 million, or 11.2% from the quarter ended March 31, 2017. The decrease from the quarter ended December 31, 2017, was due to fewer days in the quarter ended March 31, 2018, as well as loan growth occurring late in first quarter of 2018. Net interest margin for the quarter ended March 31, 2018 was 3.29%, flat versus the quarter ended December 31, 2017, and an increase of 10 basis points versus the quarter ended March 31, 2017.

Interest expense increased 5.5% during the quarter ended March 31, 2018, compared to the quarter ended December 31, 2017, due to an increase of 8 basis points in the cost of interest-bearing liabilities, and increased 29.9% compared to the quarter ended March 31, 2017, due to an increase of 20 basis points in the cost of interest-bearing liabilities. The rising cost of borrowings placed pressure on net interest margin earned from our mortgage operations as the cost of short-term borrowings to fund the mortgage business increased, while the yield from loans held for sale remained relatively flat.

Provision for loan loss was $474 thousand for the quarter ended March 31, 2018, a $44 thousand decrease from the quarter ended March 31, 2017, despite a 7.5% increase in loans. The slight decrease in loan loss provision is attributable to lower historical loss rates for the period used to determine the allowance. Nonperforming loans increased $2.5 million, to 0.79%, of total loans as of March 31, 2018, compared to 0.61% of total loans as of March 31, 2017. In addition, net charge-offs for the quarter ended March 31, 2018, increased $38 thousand compared to the quarter ended March 31, 2017, resulting in an annualized net loan charge-offs to total loans ratio of 0.10% as of March 31, 2018.

Noninterest income totaled $9.0 million for the quarter ended March 31, 2018, a decrease of $1.1 million, or 11.0%, from the quarter ended December 31, 2017, and an increase of $215 thousand, or 2.4%, from the quarter ended March 31, 2017.

The $1.1 million decrease in noninterest income from the quarter ended December 31, 2017, was due to



Exhibit 99.1

a decrease of $2.0 million in mortgage fee income, which was partially offset by an increase of $1.1 million in gain on derivatives. The decrease in mortgage fee income was primarily the result of a $94.0 million decrease in sold loan volume. The increase in gain on derivatives was primarily the result of an increase in the locked mortgage pipeline from $91.4 million as of December 31, 2017, to $153.2 million as of March 31, 2018.

The $215 thousand increase in noninterest income from the quarter ended March 31, 2017, was primarily due to a $2.5 million increase in gain on derivatives, along with increases of $413 thousand in commercial swap fees, $203 thousand in gain on sale of portfolio loans, and $143 thousand in gain on sale of securities all of which were partially offset by a decrease of $3.1 million in mortgage fee income. The increase in gain on derivatives was primarily the result of an increase in the locked mortgage pipeline from 67.6% for the quarter ended March 31, 2018, compared to a 12.8% increase in the locked mortgage pipeline for the quarter ended March 31, 2017.

Noninterest expense totaled $16.7 million for the quarter ended March 31, 2018, a decrease of $975 thousand, or 5.5%, from the quarter ended December 31, 2017, and an increase of $422 thousand, or 2.6%, from the quarter ended March 31, 2017.

The $975 thousand decrease in noninterest expense from the quarter ended December 31, 2017, was primarily due to a decrease of $626 thousand in salaries and employee benefits expense and a $448 thousand decrease in data processing and communications. The decrease in salaries and employee benefits expense was primarily the result of lower commissions paid due to a decrease in mortgage closed loan volume of 22.4% versus the quarter ended December 31, 2017. The Company is also experiencing lower data processing and communications expenses related to a new core system that was implemented in the second quarter of 2017.

The $422 thousand increase in noninterest expense from the quarter ended March 31, 2017, was primarily due to an increase of $511 thousand in salaries and employee benefits expense, due to the addition of lenders, treasury team members and the opening of two new branches in 2017. The Company continues to capitalize on disruptions in the market to build out the sales team.

As previously announced on February 20, 2018, the Company declared a quarterly cash dividend of $0.025 per share to shareholders of record at the close of business on March 2, 2018, payable March 15, 2018.



Exhibit 99.1

This was the first quarterly dividend for 2018 and was equal to the quarterly payouts in 2017 of $0.025 per share.

About MVB Financial Corp.

MVB Financial Corp. (“MVB Financial” or “MVB”), the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.”

MVB is a financial holding company headquartered in Fairmont, W.Va. Through its subsidiary, MVB Bank, Inc., and the bank’s subsidiary, MVB Mortgage, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region.

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.




Exhibit 99.1

Forward-looking Statements

MVB Financial Corp. 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 Earnings Release. These forward-looking statements are based on current expectations about the future and subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and its subsidiaries. When words such as “believes,” “expects,” “anticipates,” “may,” or similar expressions occur in this Earnings Release, the Company is making forward-looking statements. 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 the forward-looking statements contained in this Earnings Release. Those factors include, but are not limited to: credit risk, changes in market interest rates, inability to achieve merger-related synergies, competition, economic downturn or recession and government regulation and supervision. Additional factors that may cause our actual results to differ materially from those described in our forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as well as its other filings with the SEC, which are available on the SEC website at www.sec.gov. Except as required by law, the Company undertakes no obligation to update or revise 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 Securities and Exchange Commission. Accordingly, the consolidated financial information in this announcement is subject to change.


Questions or comments concerning this Earnings Release should be directed to:

MVB Financial Corp.

Donald T. Robinson, Executive Vice President and CFO
(304) 598-3500
drobinson@mvbbanking.com



Exhibit 99.1

MVB Financial Corp.
Financial Highlights

Condensed Consolidated Statements of Income
(Unaudited) (Dollars in thousands, except per share data)

 
 
Quarterly
 
 
2018
 
2017
 
2017
 
2017
 
2017
 
 
First
Quarter
 
Fourth
Quarter
 
Third
Quarter
 
Second
Quarter
 
First
Quarter
Interest income
 
$
15,054

 
$
15,086

 
$
14,630

 
$
13,814

 
$
13,068

Interest expense
 
3,589

 
3,403

 
3,216

 
2,920

 
2,762

     Net interest income
 
11,465

 
11,683

 
11,414

 
10,894

 
10,306

Provision for loan losses
 
474

 
1,036

 
96

 
523

 
518

Noninterest income
 
9,039

 
10,157

 
10,158

 
11,567

 
8,824

Noninterest expense
 
16,739

 
17,714

 
17,966

 
18,503

 
16,317

     Income before income taxes
 
3,291

 
3,090

 
3,510

 
3,435

 
2,295

Income tax expense
 
697

 
1,667

 
1,192

 
1,175

 
721

     Net income
 
$
2,594

 
$
1,423

 
$
2,318

 
$
2,260

 
$
1,574

Preferred dividends
 
121

 
124

 
123

 
122

 
129

     Net income available to common shareholders
 
$
2,473

 
$
1,299

 
$
2,195

 
$
2,138

 
$
1,445

 
 
 
 
 
 
 
 
 
 
 
Earnings per share - basic
 
$
0.24

 
$
0.12

 
$
0.21

 
$
0.21

 
$
0.14

Earnings per share - diluted
 
$
0.23

 
$
0.12

 
$
0.21

 
$
0.20

 
$
0.14

Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)

 
 
March 31, 2018
 
December 31, 2017
 
March 31, 2017
Cash and cash equivalents
 
$
23,630

 
$
20,305

 
$
18,278

Certificates of deposit with other banks
 
14,778

 
14,778

 
14,527

Investment securities
 
233,483

 
231,507

 
172,754

Loans held for sale
 
51,280

 
66,794

 
71,921

Loans
 
1,157,173

 
1,105,941

 
1,076,782

Allowance for loan losses
 
(10,067
)
 
(9,878
)
 
(9,372
)
Net loans
 
1,147,106

 
1,096,063

 
1,067,410

Premises and equipment
 
26,477

 
26,686

 
26,079

Goodwill
 
18,480

 
18,480

 
18,480

Other assets
 
66,284

 
59,689

 
44,502

     Total assets
 
$
1,581,518

 
$
1,534,302

 
$
1,433,951

 
 
 
 
 
 
 
Deposits
 
$
1,153,907

 
$
1,159,580

 
$
1,136,466

Borrowed funds
 
207,370

 
152,169

 
90,611

Other liabilities
 
69,820

 
72,361

 
68,149

Shareholders' equity
 
150,421

 
150,192

 
138,725

     Total liabilities and shareholders' equity
 
$
1,581,518

 
$
1,534,302

 
$
1,433,951




Exhibit 99.1

Reportable Segments
(Unaudited)

Three Months Ended March 31, 2018
 
Commercial & Retail Banking
 
Mortgage Banking
 
Financial Holding Company
 
Intercompany Eliminations
 
Consolidated
(Dollars in thousands)
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
13,838

 
$
1,335

 
$
1

 
$
(120
)
 
$
15,054

Mortgage fee income
 
140

 
6,673

 

 
(250
)
 
6,563

Other income
 
1,780

 
517

 
1,553

 
(1,374
)
 
2,476

     Total operating income
 
15,758

 
8,525

 
1,554

 
(1,744
)
 
24,093

Expenses:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
2,674

 
727

 
558

 
(370
)
 
3,589

Salaries and employee benefits
 
3,569

 
5,416

 
1,488

 

 
10,473

Provision for loan losses
 
417

 
57

 

 

 
474

Other expense
 
4,559

 
2,122

 
959

 
(1,374
)
 
6,266

     Total operating expenses
 
11,219

 
8,322

 
3,005

 
(1,744
)
 
20,802

Income (loss) before income taxes
 
4,539

 
203

 
(1,451
)
 

 
3,291

Income tax expense (benefit)
 
978

 
53

 
(334
)
 

 
697

Net income (loss)
 
$
3,561

 
$
150

 
$
(1,117
)
 
$

 
$
2,594

Preferred stock dividends
 

 

 
121

 

 
121

Net income (loss) available to common shareholders
 
$
3,561

 
$
150

 
$
(1,238
)
 
$

 
$
2,473



Three Months Ended March 31, 2017
 
Commercial & Retail Banking
 
Mortgage Banking
 
Financial Holding Company
 
Intercompany Eliminations
 
Consolidated
(Dollars in thousands)
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
12,312

 
$
781

 
$
1

 
$
(26
)
 
$
13,068

Mortgage fee income
 
185

 
9,637

 

 
(188
)
 
9,634

Other income
 
1,077

 
(1,831
)
 
1,210

 
(1,266
)
 
(810
)
     Total operating income
 
13,574

 
8,587

 
1,211

 
(1,480
)
 
21,892

Expenses:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
2,119

 
304

 
551

 
(212
)
 
2,762

Salaries and employee benefits
 
2,657

 
5,955

 
1,350

 

 
9,962

Provision for loan losses
 
500

 
18

 

 

 
518

Other expense
 
4,650

 
2,098

 
875

 
(1,268
)
 
6,355

     Total operating expenses
 
9,926

 
8,375

 
2,776

 
(1,480
)
 
19,597

Income (loss) before income taxes
 
3,648

 
212

 
(1,565
)
 

 
2,295

Income tax expense (benefit)
 
1,161

 
96

 
(536
)
 

 
721

Net income (loss)
 
$
2,487

 
$
116

 
$
(1,029
)
 
$

 
$
1,574

Preferred stock dividends
 

 

 
129

 

 
129

Net income (loss) available to common shareholders
 
$
2,487

 
$
116

 
$
(1,158
)
 
$

 
$
1,445




Exhibit 99.1

Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)

 
 
Three Months Ended
March 31, 2018
 
Three Months Ended
December 31, 2017
 
Three Months Ended
March 31, 2017
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Cost
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Cost
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/
Cost
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits in banks
 
$
3,883

 
$
18

 
1.83
%
 
$
4,636

 
$
15

 
1.28
%
 
$
2,734

 
$
10

 
1.48
%
CDs with other banks
 
14,778

 
72

 
1.97

 
14,778

 
75

 
2.01

 
14,527

 
69

 
1.93

Investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Taxable
 
154,430

 
895

 
2.35

 
147,459

 
774

 
2.08

 
108,862

 
546

 
2.03

     Tax-exempt
 
75,556

 
655

 
3.51

 
68,759

 
572

 
3.30

 
56,280

 
430

 
3.10

Loans and loans held for sale: 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     Commercial
 
775,764

 
8,943

 
4.68

 
770,664

 
9,042

 
4.65

 
746,364

 
7,943

 
4.32

     Tax exempt
 
14,464

 
123

 
3.46

 
14,679

 
128

 
3.46

 
15,329

 
131

 
3.47

     Real estate
 
360,744

 
4,190

 
4.71

 
374,047

 
4,300

 
4.56

 
352,144

 
3,764

 
4.33

     Consumer
 
12,517

 
158

 
5.11

 
13,006

 
180

 
5.49

 
14,370

 
175

 
4.94

Total loans
 
1,163,489

 
13,414

 
4.68

 
1,172,396

 
13,650

 
4.62

 
1,128,207

 
12,013

 
4.32

Total earning assets
 
1,412,136

 
15,054

 
4.32

 
1,408,028

 
15,086

 
4.25

 
1,310,610

 
13,068

 
4.04

Less: Allowance for loan losses
 
(9,987
)
 
 
 
 
 
(9,579
)
 
 
 
 
 
(9,427
)
 
 
 
 
Cash and due from banks
 
15,966

 
 
 
 
 
16,969

 
 
 
 
 
15,246

 
 
 
 
Other assets
 
102,645

 
 
 
 
 
96,103

 
 
 
 
 
86,215

 
 
 
 
     Total assets
 
$
1,520,760

 
 
 
 
 
$
1,511,521

 
 
 
 
 
$
1,402,644

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     NOW
 
$
443,784

 
$
762

 
0.70

 
$
467,095

 
$
807

 
0.69

 
$
415,627

 
$
525

 
0.51

     Money market checking
 
241,472

 
443

 
0.74

 
238,262

 
432

 
0.72

 
236,845

 
458

 
0.78

     Savings
 
46,544

 
20

 
0.17

 
44,685

 
19

 
0.17

 
48,092

 
19

 
0.16

     IRAs
 
17,691

 
62

 
1.43

 
17,200

 
59

 
1.36

 
16,573

 
50

 
1.22

     CDs
 
269,286

 
1,011

 
1.52

 
278,446

 
1,025

 
1.46

 
264,626

 
854

 
1.31

Repurchase agreements and federal funds sold
 
20,605

 
19

 
0.37

 
24,727

 
19

 
0.30

 
23,113

 
17

 
0.30

FHLB and other borrowings
 
160,205

 
714

 
1.81

 
122,388

 
474

 
1.54

 
103,990

 
288

 
1.12

Subordinated debt
 
33,524

 
558

 
6.75

 
33,524

 
568

 
6.72

 
33,524

 
551

 
6.67

     Total interest-bearing liabilities
 
1,233,111

 
3,589

 
1.18

 
1,226,327

 
3,403

 
1.10

 
1,142,390

 
2,762

 
0.98

Noninterest bearing demand deposits
 
129,385

 
 
 
 
 
127,417

 
 
 
 
 
113,021

 
 
 
 
Other liabilities
 
8,673

 
 
 
 
 
7,419

 
 
 
 
 
9,226

 
 
 
 
     Total liabilities
 
1,371,169

 
 
 
 
 
1,361,163

 
 
 
 
 
1,264,637

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
 
7,834

 
 
 
 
 
7,834

 
 
 
 
 
8,212

 
 
 
 
Common stock
 
10,525

 
 
 
 
 
10,496

 
 
 
 
 
10,048

 
 
 
 
Paid-in capital
 
99,110

 
 
 
 
 
99,123

 
 
 
 
 
93,476

 
 
 
 
Treasury stock
 
(1,084
)
 
 
 
 
 
(1,084
)
 
 
 
 
 
(1,084
)
 
 
 
 
Retained earnings
 
38,004

 
 
 
 
 
36,982

 
 
 
 
 
31,651

 
 
 
 
Accumulated other comprehensive income
 
(4,798
)
 
 
 
 
 
(2,993
)
 
 
 
 
 
(4,296
)
 
 
 
 
     Total stockholders’ equity
 
149,591

 
 
 
 
 
150,358

 
 
 
 
 
138,007

 
 
 
 
     Total liabilities and stockholders’ equity
 
$
1,520,760

 
 
 
 
 
$
1,511,521

 
 
 
 
 
$
1,402,644

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest spread
 
 
 
 
 
3.14

 
 
 
 
 
3.15

 
 
 
 
 
3.06

Net interest income-margin
 
 
 
$
11,465

 
3.29
%
 
 
 
$
11,683

 
3.29
%
 
 
 
$
10,306

 
3.19
%
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.



Exhibit 99.1

Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)


 
 
Quarterly
 
 
2018
 
2017
 
2017
 
2017
 
2017
 
 
First Quarter
 
Fourth Quarter
 
Third
Quarter
 
Second
Quarter
 
First
Quarter
Earnings and Per Share Data:
 
 
 
 
 
 
 
 
 
 
     Net income
 
$
2,594

 
$
1,423

 
$
2,318

 
$
2,260

 
$
1,574

     Net income available to common shareholders
 
2,473

 
1,299

 
2,195

 
2,138

 
1,445

     Earnings per share - basic
 
0.24

 
0.12

 
0.21

 
0.21

 
0.14

     Earnings per share - diluted
 
0.23

 
0.12

 
0.21

 
0.20

 
0.14

     Cash dividends paid per common share
 
0.025

 
0.025

 
0.025

 
0.025

 
0.025

     Book value per common share
 
13.53

 
13.63

 
13.51

 
13.31

 
13.09

     Weighted average shares outstanding - basic
 
10,474,138

 
10,444,627

 
10,443,443

 
10,343,933

 
9,996,544

     Weighted average shares outstanding - diluted
 
12,714,353

 
10,823,994

 
12,410,070

 
12,181,433

 
10,009,341

 
 
 
 
 
 
 
 
 
 
 
Performance Ratios:
 
 
 
 
 
 
 
 
 
 
     Return on average assets 1
 
0.68
%
 
0.38
%
 
0.63
%
 
0.63
%
 
0.45
%
     Return on average equity 1
 
6.94
%
 
3.79
%
 
6.28
%
 
6.30
%
 
4.56
%
     Net interest margin 2
 
3.29
%
 
3.29
%
 
3.37
%
 
3.31
%
 
3.19
%
     Efficiency ratio 3
 
81.64
%
 
81.11
%
 
83.28
%
 
82.38
%
 
85.30
%
     Overhead ratio 1 4
 
4.40
%
 
4.69
%
 
4.87
%
 
5.19
%
 
4.65
%
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Data and Ratios:
 
 
 
 
 
 
 
 
 
 
     Charge-offs
 
$
356

 
$
572

 
$
472

 
$
163

 
$
290

     Recoveries
 
71

 
18

 
24

 
16

 
43

     Net loan charge-offs to total loans 1 5
 
0.10
%
 
0.20
%
 
0.16
%
 
0.05
%
 
0.09
%
     Allowance for loan losses
 
10,067

 
9,878

 
9,396

 
9,748

 
9,372

     Allowance for loan losses to total loans 6
 
0.87
%
 
0.89
%
 
0.86
%
 
0.88
%
 
0.87
%
     Nonperforming loans
 
9,102

 
9,699

 
6,559

 
5,103

 
6,575

     Nonperforming loans to total loans
 
0.79
%
 
0.88
%
 
0.60
%
 
0.46
%
 
0.61
%
 
 
 
 
 
 
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
 
 
 
 
 
     Equity to assets
 
9.51
%
 
9.79
%
 
10.12
%
 
9.74
%
 
9.67
%
     Leverage ratio
 
9.50
%
 
9.27
%
 
9.41
%
 
9.59
%
 
9.24
%
     Common equity Tier 1 capital ratio
 
10.60
%
 
10.55
%
 
10.76
%
 
10.32
%
 
10.15
%
     Tier 1 risk-based capital ratio
 
11.57
%
 
11.54
%
 
11.79
%
 
11.33
%
 
11.19
%
     Total risk-based capital ratio
 
14.80
%
 
14.87
%
 
15.18
%
 
14.66
%
 
14.63
%
1 annualized for the quarterly periods presented
2 net interest income as a percentage of average interest earning assets
3 noninterest expense as a percentage of net interest income and noninterest income
4 noninterest expense as a percentage of average assets
5 charge-offs less recoveries
6 excludes loans held for sale



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