Market Overview

MVB Bank's Third Quarter Earnings Rise by 56% On Sustained Strong Commercial Lending, Record Mortgage Lending


Branch Expansion Program Underway in Key Markets

FAIRMONT, W.Va., Nov. 5, 2012 /PRNewswire/ -- MVB Financial Corp., (OTC Markets Group OTCQB: MVBF), and its bank holding company MVB Bank, Inc., today announced its quarterly results for the period ending September 30, 2012.  Third quarter 2012 net income of $1.0 million increased by 56% compared to third quarter of 2011 net income of $673,000.  For the nine-month period of 2012, net income reached $2.7 million, a 38% increase compared to the same period in 2011.

MVB's net interest income was $4.4 million for the third quarter of 2012, an increase of $700,000 or 19% from the same time period in 2011 and was driven mainly by the continued growth of MVB's balance sheet, with $92.5 million in average loan growth and a significant demand in refinancing created by historic low mortgage rates.

Deposits totaled $471.2 million for the first nine months of 2012, an increase of $80.7 million since December 31, 2011. Interest expense of $1.2 million in the third quarter of 2012 was comparable to the third quarter of 2011. Total interest income in the third quarter 2012 was $5.6 million, an increase of $697,000, or 14.2% compared to the third quarter of 2011 due primarily to continued growth in loan volume.

"Despite the challenges of margin compression, greater regulatory demands and a persistent slow economic recovery, our positive third quarter results reflect sustained strong growth in both commercial and retail lending, including a record amount of mortgage lending," said Larry F. Mazza, CEO of MVB Financial Corp.

"We are pleased to be able to provide broad and diverse assistance through our lending program to many families throughout West Virginia desiring home ownership. Our attractive interest rates and attention to client service continue to be a hallmark of MVB's unique community bank tradition. We remain focused on attracting core deposits to fund growth in the new markets through continued delivery of the most outstanding service to our clients with the highest quality products and technology," said Mazza.

Operating Performance Supported by Continued Strong Lending

MVB's high quality loan portfolio continues to drive the bank's asset growth with an 18% increase, or $93.5 million addition in both commercial and mortgage lending during the third quarter of 2012, compared to 2011.  Total assets at September 30, 2012 were $613.6 million or an increase of $80.2 million since December 31, 2011. Total capital increased by $3.1 million, or 6.5%, since December 31, 2011 driven mainly by MVB's earnings of $2.7 million for the nine-month period of 2012.  

During the third quarter, MVB's Wealth Management Solutions continued to show positive trends in growing a strong asset base and revenue stream. Also during the quarter, MVB commenced expansion of its Bridgeport operations center investing in its growing loan operations area, as well as being home to the bank's infrastructure areas including the addition of people, enhancement of facilities and technology and quality lending processes.

MVB's nonperforming loan ratio is among the lowest in the country compared to peers, indicating that the West Virginia economic climate has not suffered as much as the rest of the nation. This factor also contributes to MVB consistently being ranked among top-tier banks in the country by earning the 5-Star Superior Bank rating from Bauer Financial, Inc. for the bank's safety, soundness and financial strength.

Recently, MVB Bank opened the first new bank branch in Downtown Clarksburg's historic district in more than 15 years. Additional branches are currently either in development or being planned in Morgantown's busy Sabraton area, to the east with an additional branch in the Martinsburg market, and in the Charleston market.   

Looking Ahead

Commenting on the outlook for MVB, Larry Mazza said, "The Federal Reserve's lowering of interest rates is driving a massive refinance boom that could last for another year or two. Our commercial and retail loan growth, along with our organic growth and M&A efforts requires MVB to further raise our capital base. In order to fuel this growth, we are preparing for a capital raise in the $20 -$25 million range."

"We are committed to growth with quality and to never lose sight of what it means to be a true community bank by adhering to a high service level while leveraging the technology expectations ahead.  We are committed to organic growth and expanding our footprint in West Virginia while seeking strategic acquisitions that bring true value to our shareholders," noted Mazza.

About MVB Financial Corp.

MVB Bank, Inc. is a wholly-owned subsidiary of MVB Financial Corp (OTCQB: MVBF), with locations in Marion, Monongalia and Harrison counties in North Central West Virginia, and Berkeley and Jefferson Counties in the Eastern Panhandle of West Virginia.  The OTCQB is a market tier operated by the OTC Market Group Inc. for over-the-counter traded companies that are current in their reporting with a U.S. regulator. For additional information visit MVB's investor relations webpage at

SOURCE MVB Financial Corp.

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