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Middletown Valley Bank, Inc. Reports Results For The Second Quarter 2018

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Middletown Valley Bank, Inc. Reports Results For The Second Quarter 2018

PR Newswire

MIDDLETOWN, Md., July 20, 2018 /PRNewswire/ -- Middletown Valley Bank, Inc. (OTC:MNVB) reported increased quarterly earnings and record total assets for the second quarter of 2018. Net income for the quarter ended June 30, 2018 was $701.5 thousand and earnings per share of $0.31 (share count is 948 thousand higher in 2Q18 vs. 2Q17,) as compared to net income of $407.9 thousand and earnings per share of $0.32 recorded for the second quarter 2017. Total assets continued to grow in the second quarter 2018 to $392.9 million, an increase of $81.4 million (26%) versus second quarter ended 2017 and just shy of the $400 million threshold.

(PRNewsfoto/Middletown Valley Bank)

The increase in second quarter 2018 earnings versus second quarter 2017 was due to a combination of an increase in net interest income of $712.7 thousand, a decrease in loan loss provision of $268.9 thousand, and an increase in noninterest income of $37.7 thousand more than offsetting the $683.8 thousand increase in non-interest expense and $41.9 thousand increase in income taxes. The Net interest income year over year increase was driven by average loan balances increasing $72.6 million to $302.4 million and 9 bps expansion in net interest margin. Income taxes were positively impacted by the lowered corporate tax rate. Non-interest expense growth was primarily caused by an increase in personnel and technology enhancements costs as the Bank has crested over 100 employees in the second quarter of 2018.  

Net charge offs were $86 thousand and $106 thousand for the second quarter ended June 30, 2018 and second quarter ended 2017, respectively. Nonperforming assets to total loans increased to 1.20% in the quarter ended June 30, 2018 versus 1.11% for the quarter ended June 30, 2017 while declining from 1.46% for the March 31, 2018 quarter. The ratio of Allowance for loan losses to total loans declined to 0.98% and 1.13% for the quarters ended June 30, 2018 and 2017, respectively as the overall loan portfolio continues to see improvement in credit quality and economic performance.

The balance sheet growth mentioned previously for the first quarter ended June 30, 2018 was driven by net loan growth of $81.5 million (35%) to $312.2 million and $3.0 million increase in cash to $22.1 million which were funded by a $63.8 million (22.5%) increase in deposits, a $4.7 million reduction in investment securities, and a $18 million increase in equity due to the fourth quarter 2017 common equity capital raise and retained earnings. The dividend declared was $0.03 for the second quarter ended June 30, 2018 as compared to $0.02 per share for the second quarter ended June 30, 2017.

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward- looking terminology such as "believes," "expects," "intends," "may," "will," "should," "anticipates" or similar terminology. Such statements, specifically regarding the Company's intentions regarding transparency, growth and market expansion, are subject to risks and uncertainties that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, changes in interest rates, stock market liquidity, deposit flows, loan demand and real estate values, as well as changes in economic, competitive, governmental, regulatory, technological and other factors which may affect the Company specifically, its existing and target market areas or the banking industry in general. The realization or occurrence of these risks or uncertainties could cause actual results to differ materially from those addressed in the forward-looking statements.

Middletown Valley Bank
Brian M. Ropp
Executive Vice President, Chief Financial Officer 
(301) 371-3029

 

Middletown Valley Bank

June 30, 2018

Summary Financials

(dollars in thousands)



Balance Sheet


June 30,


June 30,



December 31,



2018


2017



2017



(unaudited)


(unaudited)



(audited)

Cash


$                22,095


$               19,070



$                   20,053

FHLB Stock


325


255



255

Investments, at market value


44,122


48,835



47,458

Loans, net of Reserve


312,191


230,638



280,183

Fixed assets


5,868


5,372



5,615

Other assets


8,386


7,454



7,660

Total Assets


$              392,987


$             311,624



$                 361,224









Deposits


$              347,290


$             283,499



$                 315,932

Borrowings


-


-



-

Other liabilities


1,722


1,904



1,904

Total Liabilities


349,012


285,403



317,836

Equity


44,969


26,533



43,815

Unreaized gain(loss), net of tax


(994)


(312)



(427)

Total Equity


43,975


26,221



43,388

Total Liabilities & Equity


$              392,987


$             311,624



$                 361,224


















For the Three Months Ended


For the Six Months Ended

Income Statement


June 30,


June 30,


June 30,

June 30,



2018


2017


2018

2017



(unaudited)


(unaudited)


(unaudited)

(unaudited)

Total interest and fee income


$           3,820,067


$          2,859,868


$      7,366,360

$              5,514,724

Total interest expense


505,312


257,841


949,625

478,260

Net interest income 


3,314,755


2,602,027


6,416,735

5,036,464

Provision for loan losses


(21,735)


247,128


182,000

269,795

Net interest income after provision


3,336,490


2,354,899


6,234,735

4,766,669

Other non-interest income


288,829


251,101


570,654

515,163

Other non-interest expense


2,669,634


1,985,827


5,171,837

3,895,136

Pre-merger, pre-tax net income


955,685


620,173


1,633,552

1,386,696

Income taxes


254,149


212,292


430,693

483,521

Net income


$              701,536


$             407,881


$      1,202,859

$                 903,175

 

 

Middletown Valley Bank










Selected Financial Data 



























June 30,


June 30,




December 31,



2018


2017




2017

(dollars in thousands)


(unaudited)


(unaudited)




(audited)

Total Assets 


$           392,987


$          311,624




$            361,224

Loans 


312,191


230,638




280,183

Deposits 


347,290


283,499




315,932

Shareholder's equity 


43,975


26,221




43,388










Nonperforming Assets:









Accruing troubled debt restructures


$                  745


$                 773




$                   759

Loans 90 past due and still accruing 


-


-




-

Nonaccrual loans 


3,020


1,811




3,134

Foreclosed properties 


167


-




167

Total nonperforming assets 


$               3,932


$              2,584




$                4,060





















For the Three Months Ended


For the Six Months Ended



June 30,


June 30,


June 30,


June 30,

Summary of Operating Results 

2018


2017


2018


2017

(dollars in thousands)


(unaudited)


(unaudited)


(unaudited)


(unaudited)

Pre-allowance for loan loss provision, pre-tax net income

$           933,950


$          867,301


$      1,815,552


$         1,656,491

Allowance for loan loss provision, pre-tax

(21,735)


247,128


182,000


269,795

Tax expense


254,149


212,292


430,693


483,521

Net Income


$           701,536


$          407,881


$      1,202,859


$            903,175










Charge-Offs 


$                    86


$                 108


$                110


$                   118

(Recoveries)


(3)


(2)


(7)


(4)

Net charge-offs


$                    83


$                 106


$                103


$                   114










Per Common Share Data 


















Basic earnings per share


$                 0.31


$                0.32


$               0.54


$                  0.70

Common shares outstanding 


2,233,820


1,285,774


2,233,820


1,285,774

Dividends declared 


$                 0.03


$                0.02


$               0.06


$                  0.04

Book value per share


$               19.69


$              20.39


$             19.69


20.39










Selected Unaudited Financial Ratios
















Return on average assets


0.74%


0.53%


0.66%


0.62%

Return on average equity 


6.38%


6.21%


5.61%


7.10%

Allowance for loan losses to total loans

0.98%


1.13%


0.98%


1.13%

Nonperforming assets to total loans


1.20%


1.11%


1.20%


1.11%

Net charge-offs to average loans


0.02%


0.04%


0.02%


0.03%

Common equity tier 1 to risk-weighted assets 

15.52%


11.93%


15.52%


11.93%

Tier 1 capital to risk-weighted assets 


15.52%


11.93%


15.52%


11.93%

Total capital to risk-weighted assets 


16.77%


13.17%


16.77%


13.17%

Average equity to average assets 


11.19%


8.42%


11.19%


8.42%

Net interest margin 


3.68%


3.59%


3.65%


3.59%

Loan to deposit ratio


90.88%


82.27%


90.84%


82.81%










 

 

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SOURCE Middletown Valley Bank, Inc.

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