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Section 1: 8-K (8-K - Q1 2019 EARNINGS RELEASE)

Document

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 1, 2019


MVB Financial Corp.
(Exact name of registrant as specified in its charter)

West Virginia000-5056720-0034461
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)

301 Virginia Avenue, Fairmont, WV26554-2777
(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 1, 2019, MVB Financial Corp. (NASDAQ: MVBF) issued a press release announcing its financial results for the quarter ended March 31, 2019. 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.

Press release of MVB Financial Corp. dated May 1, 2019

        



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 1, 2019



EXHIBIT INDEX


Exhibit NumberDescriptionExhibit Location
Press release of MVB Financial Corp. dated May 1, 2019Filed herewith


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Section 2: EX-99.1 (Q1 2019 EARNINGS RELEASE)

Document
Exhibit 99.1
397756916_image1.jpg
MEDIA CONTACT
N E W S R E L E A S EAmy Baker
VP, Corporate Communications
abaker@mvbbanking.com
844-682-2265

MVB Financial Corp. Reports First Quarter 2019 Earnings, Continues Strong Organic Growth in Loans and Deposits

FAIRMONT, W.Va., May 1, 2019 – MVB Financial Corp. (the “Company”) (NASDAQ: MVBF) reported net income of $3.2 million, or $0.26 basic and diluted earnings per share for the three months ended March 31, 2019, an increase of 6.4% compared to $3.0 million, or $0.25 basic and $0.24 diluted earnings per share for the three months ended December 31, 2018, and an increase of 23.1% compared to $2.6 million, or $0.24 basic and $0.23 diluted earnings per share, for the three months ended  March 31, 2018.

Noninterest-bearing deposits increased $22.5 million, or 10.5%, from December 31, 2018, and increased $93.3 million, or 65.3%, from March 31, 2018, to a balance of $236.1 million as of March 31, 2019. The growth in noninterest-bearing deposits was primarily driven by MVBs strategy to focus on Fintech and specialty deposits. As of March 31, 2019, noninterest-bearing deposits were 16.5% of total deposits, compared to 16.3% as of December 31, 2018, and 12.4% as of March 31, 2018.

For the three months ended March 31, 2019, loans increased $36.9 million, or 2.8%, to $1.3 billion, from December 31, 2018, which represents an annualized increase of 11.3%. The increase in loans has been driven by strong growth in MVBs West Virginia markets and expansion in Northern Virginia. In addition to the increase in loan volume during the quarter, loan yields increased 2 basis points.

MANAGEMENT OVERVIEW
“We are very pleased with First Quarter 2019 performance results, which continued strong organic growth in loans and deposits, especially noninterest-bearing deposits. MVB has focused on our true financial north star, which is earnings per share (EPS) driven by three major factors: net interest margin (NIM), noninterest income (NII) and noninterest expense (NIE),” said Larry F. Mazza, CEO and President, MVB Financial. “Although it is said that ‘culture eats strategy for breakfast,’ we believe that both are necessary ingredients for success. MVB’s corporate culture and our MVB 3.0 strategy provide a strong
1

Exhibit 99.1
foundation for the future and enable us to help our trusted partners, including our shareholders, customers, team members and communities, succeed.”

FIRST QUARTER 2019 HIGHLIGHTS
Loans of $1.3 billion as of March 31, 2019, increased $36.9 million, or 2.8%, from December 31, 2018, and increased $184.0 million, or 15.9%, from March 31, 2018.
Assets of $1.8 billion as of March 31, 2019, increased $38.9 million, or 2.2%, from December 31, 2018, and increased $208.4 million, or 13.2%, from March 31, 2018.
Deposits of $1.4 billion as of March 31, 2019, increased $121.5 million, or 9.3%, from December 31, 2018, and increased $276.8 million, or 24.0% from March 31, 2018. Noninterest-bearing deposits of $236.1 million as of March 31, 2019, increased $22.5 million, or 10.5%, from December 31, 2018, and increased $93.3 million, or 65.3%, from March 31, 2018.
Net interest income of $14.0 million for the quarter ended March 31, 2019, decreased $438 thousand, or 3.0%, from the quarter ended December 31, 2018, and increased $2.5 million, or 21.9% from the quarter ended March 31, 2018. Net interest margin of 3.45% for the quarter ended March 31, 2019, decreased 9 basis points versus the quarter ended December 31, 2018, and increased 16 basis points versus the quarter ended March 31, 2018.
Noninterest income of $8.8 million for the quarter ended March 31, 2019, increased $470 thousand, or 5.7%, from the quarter ended December 31, 2018, and decreased $274 thousand, or 3.0%, from the quarter ended March 31, 2018.
Noninterest expense of $18.4 million for the quarter ended March 31, 2019, decreased $25 thousand, or 0.1%, from the quarter ended December 31, 2018, and increased $1.7 million, or 10.2%, from the quarter ended March 31, 2018.

LOANS
Loans totaled $1.3 billion as of March 31, 2019, an increase of $36.9 million, or 2.8%, from December 31, 2018, and an increase of $184.0 million, or 15.9%, from March 31, 2018. The growth in loans is attributable to organic growth and the addition of commercial lenders within the Company’s primary lending areas. The yield on loans was 5.20% as of the quarter ended March 31, 2019, an increase of 2 basis points from the quarter ended December 31, 2018, and an increase of 52 basis points from the quarter ended March 31, 2018. The increase in yields is driven both by Fed rate increases and a focus on commercial loans to increase loan yields.

2

Exhibit 99.1
DEPOSITS
Deposits totaled $1.4 billion as of March 31, 2019, and increased $121.5 million, or 9.3%, from December 31, 2018, while increasing $276.8 million, or 24.0%, from March 31, 2018. Noninterest-bearing deposits totaled $236.1 million as of March 31, 2019, or 16.5%, of the total deposit base, an increase of $22.5 million, or 10.5%, from December 31, 2018, and an increase of $93.3 million, or 65.3%, from March 31, 2018. Noninterest-bearing deposits remain a core funding source for the Company. Of the $236.1 million in noninterest-bearing deposits, balances of $62.9 million are related to Fintech opportunities and balances of $33.4 million are related to Title business opportunities. Total Fintech deposits are $75.7 million and total Title business deposits are $49.6 million as of March 31, 2019.

NET INTEREST INCOME
Net interest income for the quarter ended March 31, 2019, was $14.0 million, a decrease of $438 thousand, or 3.0%, from the quarter ended December 31, 2018, and an increase of $2.5 million, or 21.9%, from the quarter ended March 31, 2018. Net interest margin for the quarter ended March 31, 2019 was 3.45%, a decrease of 9 basis points versus the quarter ended December 31, 2018, and an increase of 16 basis points versus the quarter ended March 31, 2018.  A decrease of $279 thousand in loan fees for the quarter ended March 31, 2019 versus the quarter ended December 31, 2018 caused an approximate 8 basis point decrease in loan yield and 7 basis point decrease in net interest margin. The remaining difference is due to the higher cost of deposits driven by the timing of acquiring and onboarding Fintech deposits.

Interest income increased 0.2% during the quarter ended March 31, 2019, compared to the quarter ended December 31, 2018, due to an increase of 4 basis points in the yield on earning assets, and increased 30.4% compared to the quarter ended March 31, 2018, due to an increase of 53 basis points in the yield on earning assets. The increase in the yield on earning assets compared to the quarter ended December 31, 2018, was the result of a 6-basis point increase in real estate loans and a 5-basis point increase in taxable investment securities. The increase in the yield on earning assets compared to the quarter ended March 31, 2018, was the result of a 69-basis point increase in commercial loans.

Interest expense increased 9.2% during the quarter ended March 31, 2019, compared to the quarter ended December 31, 2018, due to an increase of 15 basis points in the cost of interest-bearing liabilities, and increased 57.5% compared to the quarter ended March 31, 2018, due to an increase of 52 basis points in the cost of interest-bearing liabilities. The increase in the cost of interest-bearing liabilities compared to the quarter ended December 31, 2018, was the result of a 13-basis point increase in money
3

Exhibit 99.1
market checking, a 19-basis point increase in CDs and a 20-basis point increase in FHLB and other borrowings. The increase in the cost of interest-bearing liabilities compared to the quarter ended March 31, 2018, was the result of a 68-basis point increase in money market checking, a 63-basis point increase in CDs and a 103-basis point increase in FHLB and other borrowings.

ASSET QUALITY
Provision for loan losses was $300 thousand for the quarter ended March 31, 2019. This was an $8 thousand, or 2.7%,  increase from the quarter ended December 31, 2018, due to a 2.8% increase in loans. Provision decreased $174 thousand from the quarter ended March 31, 2018, with a 15.9% increase in loans. The decrease in loan loss provision is attributable to a $14.9 million decrease in loan volume during the quarter ended  March 31, 2019 compared to during the quarter ended March 31, 2018, as well as decreased net charge-offs for the quarter ended March 31, 2019, compared to the quarter ended March 31, 2018. Nonperforming loans decreased $2.0 million, to 0.53%, of total loans as of March 31, 2019, compared to 0.54% of total loans as of December 31, 2018, and compared to 0.79% of total loans as of March 31, 2018. In addition, net charge-offs for the quarter ended March 31, 2019, decreased $795 thousand compared to the quarter ended December 31, 2018, and decreased $288 thousand compared to the quarter ended March 31, 2018. These decreases resulted in an annualized net loan charge-offs to total loans ratio of 0.00% as of March 31, 2019, compared to 0.24% as of December 31, 2018, and compared to 0.10% as of March 31, 2018.

NONINTEREST INCOME
Noninterest income totaled $8.8 million for the quarter ended March 31, 2019, an increase of $470 thousand, or 5.7%, from the quarter ended December 31, 2018, and a decrease of $274 thousand, or 3.0%, from the quarter ended March 31, 2018.

The $470 thousand increase in noninterest income from the quarter ended December 31, 2018, was due to an increase in the gain on derivatives of $1.2 million, an increase in income on bank-owned life insurance of $301 thousand and an increase in the holding gain on equity securities of $173 thousand. These increases were partially offset by a decrease in mortgage fee income of $1.0 million and a decrease in the gain on sale of securities of $118 thousand. The increase in gain on derivatives of $1.2 million was largely the result of an increase of 42.7% in the locked mortgage pipeline during the three months ended March 31, 2019, compared to a 27.8% decrease in the locked mortgage pipeline during the three months ended December 31, 2018. The decrease in mortgage fee income of $1.0 million was the result of a decrease of $66.5 million, or 20.9%, in the volume of mortgage loans sold.

4

Exhibit 99.1
The $274 thousand decrease in noninterest income from the quarter ended March 31, 2018, was primarily due to a decrease in the gain on sale of securities of $444 thousand, a decrease in commercial swap fee income of $333 thousand, a decrease in gain on the sale of portfolio loans of $157 thousand and a decrease in gain on derivatives of $134 thousand. These decreases were partially offset by an increase of $307 thousand in income on bank-owned life insurance and an increase of $210 thousand in the holding gain on equity securities. The decrease in gain on derivatives of $134 thousand was largely the result of an increase of 42.7% in the locked mortgage pipeline during the three months ended March 31, 2019, compared to an increase of 67.6% in the locked mortgage pipeline during the three months ended March 31, 2018.

NONINTEREST EXPENSE
Noninterest expense totaled $18.4 million for the quarter ended March 31, 2019, a decrease of $25 thousand, or 0.1%, from the quarter ended December 31, 2018, and an increase of $1.7 million, or 10.2%, from the quarter ended March 31, 2018.

The $1.7 million increase in noninterest expense from the quarter ended March 31, 2018, was primarily due to an increase in salaries and employee benefits expense of $1.3 million, an increase in data processing and communication expense of $153 thousand, an increase in occupancy and equipment expense of $206 thousand and an increase in insurance, tax and assessment expense of $115 thousand. These increases were partially offset by a decrease in marketing, contributions and sponsorships expense of $133 thousand.

SUBSEQUENT EVENT
As previously announced on April 29, 2019, the Company continues to carve a niche in the fintech industry by making strategic investments in fintech companies. To date, MVB has invested a total of $3.1 million in various fintech companies. After a recent valuation of MVB’s fintech investment portfolio, MVB intends to recognize a pre-tax gain on its equity investment of $13.5 million that will be recognized in the Second Quarter of 2019.

DIVIDEND
As previously announced on February 19, 2019, the Company declared a quarterly cash dividend of $0.035 per share to shareholders of record at the close of business on March 1, 2019, payable March 15,
5

Exhibit 99.1
2019. This was the first quarterly dividend for 2019 and includes a one-half cent, or 16.7% increase per share, compared to the previous quarter dividend of $0.03 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 subsidiaries, MVB Mortgage and MVB Community Development Corporation, 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.
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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, 2018, 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
7

Exhibit 99.1
MVB Financial Corp.
Financial Highlights

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

Quarterly
2019 2018 2018 2018 2018 
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Interest income$19,623 $19,586 $18,176 $16,944 $15,054 
Interest expense5,651 5,176 4,652 4,289 3,589 
Net interest income13,972 14,410 13,524 12,655 11,465 
Provision for loan losses300 292 1,069 605 474 
Noninterest income8,765 8,295 10,511 10,795 9,039 
Noninterest expense18,448 18,473 18,417 19,249 16,739 
Income before income taxes3,989 3,940 4,549 3,596 3,291 
Income tax expense797 941 970 765 697 
Net income$3,192 $2,999 $3,579 $2,831 $2,594 
Preferred dividends121 123 123 122 121 
Net income available to common shareholders$3,071 $2,876 $3,456 $2,709 $2,473 
Earnings per share - basic$0.26 $0.25 $0.30 $0.25 $0.24 
Earnings per share - diluted$0.26 $0.24 $0.29 $0.25 $0.23 

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

March 31, 2019December 31, 2018March 31, 2018
Cash and cash equivalents$17,958 $22,221 $23,630 
Certificates of deposit with other banks14,778 14,778 14,778 
Investment securities234,582 231,213 233,483 
Loans held for sale65,955 75,807 51,280 
Loans1,341,218 1,304,366 1,157,173 
Allowance for loan losses(11,242)(10,939)(10,067)
Net loans1,329,976 1,293,427 1,147,106 
Premises and equipment25,922 26,545 26,477 
Goodwill18,480 18,480 18,480 
Other assets82,257 68,498 66,284 
Total assets$1,789,908 $1,750,969 $1,581,518 
Deposits$1,430,659 $1,309,154 $1,153,907 
Borrowed funds114,884 214,887 207,370 
Other liabilities63,493 50,155 69,820 
Shareholders' equity180,872 176,773 150,421 
Total liabilities and shareholders' equity$1,789,908 $1,750,969 $1,581,518 

8

Exhibit 99.1
Reportable Segments
(Unaudited)

Three Months Ended March 31, 2019Commercial & Retail BankingMortgage BankingFinancial Holding CompanyIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$18,327 $1,538 $$(243)$19,623 
Interest expense4,754 993 285 (381)5,651 
Net interest income13,573 545 (284)138 13,972 
Provision for loan losses247 53 — — 300 
Net interest income after provision for loan losses13,326 492 (284)138 13,672 
Noninterest Income:
Mortgage fee income109 6,697 — (136)6,670 
Other income1,566 476 1,779 (1,726)2,095 
Total noninterest income1,675 7,173 1,779 (1,862)8,765 
Noninterest Expenses:
Salaries and employee benefits4,395 5,159 2,180 — 11,734 
Other expense5,352 2,025 1,061 (1,724)6,714 
Total noninterest expenses9,747 7,184 3,241 (1,724)18,448 
Income (loss) before income taxes5,254 481 (1,746)— 3,989 
Income tax expense (benefit)1,054 146 (403)— 797 
Net income (loss)$4,200 $335 $(1,343)$— $3,192 
Preferred stock dividends— — 121 — 121 
Net income (loss) available to common shareholders$4,200 $335 $(1,464)$— $3,071 

Three Months Ended December 31, 2018Commercial & Retail BankingMortgage BankingFinancial Holding CompanyIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$17,990 $1,797 $$(203)$19,586 
Interest expense4,164 1,140 323 (451)5,176 
Net interest income13,826 657 (321)248 14,410 
Provision for loan losses319 (27)— — 292 
Net interest income after provision for loan losses13,507 684 (321)248 14,118 
Noninterest income:
Mortgage fee income141 7,809 — (247)7,703 
Other income1,427 (728)1,663 (1,770)592 
Total noninterest income1,568 7,081 1,663 (2,017)8,295 
Noninterest Expense:
Salaries and employee benefits3,978 5,638 2,121 — 11,737 
Other expense5,278 2,042 1,185 (1,769)6,736 
Total noninterest expenses9,256 7,680 3,306 (1,769)18,473 
Income (loss) before income taxes5,819 85 (1,964)— 3,940 
Income tax expense (benefit)1,333 23 (415)941 
Net income (loss)$4,486 $62 $(1,549)$— $2,999 
Preferred stock dividends— — 123 — 123 
Net income (loss) available to common shareholders$4,486 $62 $(1,672)$— $2,876 


9

Exhibit 99.1
Three Months Ended March 31, 2018Commercial & Retail BankingMortgage BankingFinancial Holding CompanyIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$13,838 $1,335 $$(120)$15,054 
Interest expense2,674 727 558 (370)3,589 
Net interest income11,164 608 (557)250 11,465 
Provision for loan losses417 57 — — 474 
Net interest income after provision for loan losses10,747 551 (557)250 10,991 
Noninterest income:
Mortgage fee income140 6,673 — (250)6,563 
Other income1,780 517 1,553 (1,374)2,476 
Total noninterest income1,920 7,190 1,553 (1,624)9,039 
Noninterest Expense:
Salaries and employee benefits3,569 5,416 1,488 — 10,473 
Other expense4,559 2,122 959 (1,374)6,266 
Total noninterest expenses8,128 7,538 2,447 (1,374)16,739 
Income (loss) before income taxes4,539 203 (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 

10

Exhibit 99.1
Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)

Three Months Ended
March 31, 2019
Three Months Ended
December 31, 2018
Three Months Ended
March 31, 2018
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$7,546 $49 2.63 %$8,123 $45 2.17 %$3,883 $18 1.83 %
CDs with other banks14,778 73 2.00  14,778 74 1.99  14,778 72 1.97  
Investment securities:
Taxable139,692 879 2.55  146,488 924 2.50  154,430 895 2.35  
Tax-exempt92,417 837 3.67  79,906 723 3.59  75,556 655 3.51  
Loans and loans held for sale: 1
Commercial951,836 12,594 5.37  924,547 12,518 5.37  775,764 8,943 4.68  
Tax exempt14,251 123 3.50  14,454 128 3.51  14,464 123 3.46  
Real estate411,639 4,941 4.87  415,502 5,039 4.81  360,744 4,190 4.71  
Consumer9,654 127 5.34  10,215 135 5.24  12,517 158 5.11  
Total loans1,387,380 17,785 5.20  1,364,718 17,820 5.18  1,163,489 13,414 4.68  
Total earning assets1,641,813 19,623 4.85  1,614,013 19,586 4.81  1,412,136 15,054 4.32  
Less: Allowance for loan losses(11,071)(11,268)(9,987)
Cash and due from banks16,088 16,515 15,966 
Other assets112,301 109,146 102,645 
Total assets$1,759,131 $1,728,406 $1,520,760 
Liabilities
Deposits:
NOW$357,005 $729 0.83  $414,997 $865 0.83  $443,784 $762 0.70  
Money market checking297,607 1044 1.42  261,928 852 1.29  241,472 443 0.74  
Savings40,235 0.01  40,494 0.01 46,544 20 0.17  
IRAs17,826 79 1.80  17,937 78 1.73  17,691 62 1.43  
CDs428,610 2,270 2.15  384,540 1,902 1.96  269,286 1,011 1.52  
Repurchase agreements and federal funds sold14,206 14 0.40  15,573 0.15  20,605 19 0.37  
FHLB and other borrowings175,222 1,229 2.84  173,110 1,150 2.64  160,205 714 1.81  
Subordinated debt17,524 285 6.60  17,861 322 7.15  33,524 558 6.75  
Total interest-bearing liabilities1,348,235 5,651 1.70  1,326,440 5,176 1.55  1,233,111 3,589 1.18  
Noninterest bearing demand deposits214,541 217,527 129,385 
Other liabilities18,450 11,903 8,673 
Total liabilities1,581,226 1,555,870 1,371,169 
Stockholders’ equity
Preferred stock7,834 7,834 7,834 
Common stock11,659 11,633 10,525 
Paid-in capital116,925 116,254 99,110 
Treasury stock(1,084)(1,084)(1,084)
Retained earnings49,161 46,852 38,004 
Accumulated other comprehensive income(6,590)(8,953)(4,798)
Total stockholders’ equity177,905 172,536 149,591 
Total liabilities and stockholders’ equity$1,759,131 $1,728,406 $1,520,760 
Net interest spread3.15  3.26  3.14  
Net interest income-margin$13,972 3.45  $14,410 3.54  $11,465 3.29  
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
11

Exhibit 99.1
Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)

Quarterly
2019 2018 2018 2018 2018 
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Earnings and Per Share Data:
Net income$3,192 $2,999 $3,579 $2,831 $2,594 
Net income available to common shareholders3,071 2,876 3,456 2,709 2,473 
Earnings per share - basic0.26 0.25 0.30 0.25 0.24 
Earnings per share - diluted0.26 0.24 0.29 0.25 0.23 
Cash dividends paid per common share0.035 0.030 0.030 0.025 0.025 
Book value per common share14.90 14.55 14.13 13.93 13.53 
Tangible book value per common share13.26 12.92 12.48 12.25 11.72 
Weighted average shares outstanding - basic11,607,543 11,582,378 11,416,202 10,634,805 10,474,138 
Weighted average shares outstanding - diluted13,177,281 12,772,222 13,113,259 11,502,148 12,714,353 
Performance Ratios:
Return on average assets 1
0.73 %0.69 %0.85 %0.70 %0.68 %
Return on average equity 1
7.18 %6.95 %8.53 %7.40 %6.94 %
Net interest margin 2
3.45 %3.54 %3.43 %3.38 %3.29 %
Efficiency ratio 3
81.14 %81.36 %76.63 %82.09 %81.64 %
Overhead ratio 1 4
4.19 %4.28 %4.38 %4.76 %4.40 %
Equity to assets10.11 %10.10 %9.92 %9.84 %9.51 %
Asset Quality Data and Ratios:
Charge-offs$— $801 $294 $29 $356 
Recoveries13 71 
Net loan charge-offs to total loans 1 5
%0.24 %0.09 %0.01 %0.10 %
Allowance for loan losses11,242 10,939 11,439 10,651 10,067 
Allowance for loan losses to total loans 6
0.84 %0.84 %0.88 %0.88 %0.87 %
Nonperforming loans7,075 7,103 12,846 9,419 9,102 
Nonperforming loans to total loans0.53 %0.54 %0.99 %0.78 %0.79 %
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

12

Exhibit 99.1
Non-GAAP Reconciliation: Tangible Book Value per Common Share
(Unaudited) (Dollars in thousands)

Quarterly
2019 2018 2018 2018 2018 
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Goodwill$18,480 $18,480 $18,480 $18,480 $18,480 
Core deposit intangibles527 550 574 598 622 
Total intangibles19,007 19,030 19,054 19,078 19,102 
Total equity180,872 176,773 170,876 165,795 150,421 
Less: Preferred equity(7,834)(7,834)(7,834)(7,834)(7,834)
Less: Total intangibles(19,007)(19,030)(19,054)(19,078)(19,102)
Tangible common equity154,031 149,909 143,988 138,883 123,485 
Tangible common equity154,031 149,909 143,988 138,883 123,485 
Common shares outstanding (000s)11,615 11,607 11,537 11,338 10,539 
Tangible book value per common share$13.26 $12.92 $12.48 $12.25 $11.72 

13
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