EX-99.1 2 q42021earningsrelease.htm EX-99.1 Document
Exhibit 99.1
mvbfa.jpg
N E W S R E L E A S E


MVB Financial Corporation Announces Fourth Quarter Results
and Record Earnings for Year-End 2021

(FAIRMONT, WV) February 17, 2022 – MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB” or the “Company”), the holding company for MVB Bank, Inc. ("MVB Bank"), today announced financial results for the fourth quarter and year ended December 31, 2021, with reported net income of $10.0 million, or $0.83 basic and $0.77 diluted earnings per share for the three months ended December 31, 2021.
QuarterlyYear-to-Date
20212021202020212020
Fourth QuarterThird QuarterFourth Quarter
Net income$9,959 $11,828 $11,838 $39,121 $37,411 
Earnings per share - basic$0.83 $1.00 $1.00 $3.32 $3.13 
Earnings per share - diluted$0.77 $0.92 $0.97 $3.10 $3.06 

Earnings for the fourth quarter were impacted by the release of allowance for loan losses of $5.7 million. The after-tax impact of the release on basic and diluted earnings per share was $0.38 and $0.35, respectively, for the three months ended December 31, 2021.

“MVB’s fourth quarter and record earnings for 2021 reflect the diversity of our tech-forward business model, as well as our strong positioning for the future,” said Larry F. Mazza, Chief Executive Officer, MVB Financial. “The transformation of our ‘best-in-class’ funding profile continues, as noninterest-bearing deposits now represent 47% of MVB Bank’s total deposit funding, up from 8% when we pivoted our company seven years ago. At the same time, our loan growth initiatives have come to fruition against the backdrop of a strengthening economy and rising interest rates, leaving our highly-liquid balance sheet very well-positioned, highlighted on one side by strong low-cost funding, and on the other by an increasingly diverse loan growth engine.”

Mazza added, “Other recent highlights include substantial gains recognized from our Fintech investment portfolio, a core component of our business in which we not only provide banking services to Fintechs, but also build and invest in them as well. 2021 marked the successful completion of our MVB 3.0 three-year strategic

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plan, in which we exceeded our performance goals. We now look to implement our new three-year plan, called ‘MVB F1,’ the details of which we look forward to discussing at our Investor Conference in Las Vegas on March 14 and 15, 2022.”

FOURTH QUARTER 2021 HIGHLIGHTS
•Fintech and Gaming verticals power continued favorable remix of funding base
◦Noninterest-bearing (“NIB”) deposits were $1.12 billion as of December 31, 2021, up $121.1 million, or 12%, and $404.6 million, or 57%, from September 30, 2021 and December 31, 2020, respectively. NIB deposits as a percentage of total deposits were 47% as of December 31, 2021, as compared to 42% and 36% as of September 30, 2021 and December 31, 2020, respectively.
◦Financial technology (“Fintech”) deposits totaled $1.14 billion as of December 31, 2021, up $166.4 million, or 17%, and $609.1 million, or 114%, from September 30, 2021 and December 31, 2020, respectively.
◦Gaming deposits, which are included in total Fintech deposits, totaled $911.6 million as of December 31, 2021, up $137.5 million, or 18%, and $553.7 million, or 155%, from September 30, 2021 and December 31, 2020, respectively.
•Robust loan growth driven by an increasingly diverse customer base
◦Total loans of $1.87 billion increased by $105.7 million, or 6%, compared to September 30, 2021 and $416.1 million, or 29%, from December 31, 2020. Loans, excluding Paycheck Protection Program (“PPP”) loans of $131.7 million, totaled $1.74 billion as of December 31, 2021, an increase of $121.3 million, or 8%, from September 30, 2021, and an increase of $366.4 million, or 27% from December 31, 2020.
◦Loan growth during the quarter was driven primarily by our health care lending group and strategic lending partnerships.
◦The loan-to-deposit ratio was 78.6% as of December 31, 2021, as compared to 73.5% at September 30, 2021, and 73.3% as of December 31, 2020.
•Strategic Fintech investments yield recent gains
◦For the quarter ended December 31, 2021, MVB recorded income of $2.8 million related to a strategic investment within its Fintech investment portfolio.
◦Since 2016, MVB’s Fintech investment portfolio has generated an internal rate of return of 184%.
•Continued value creation at a peer-leading pace
◦Tangible book value (“TBV”) per share, a non-U.S. GAAP measure, was $22.17 as of December 31, 2021, an increase of 2% and 12% from September 30, 2021 and December 31, 2020, respectively. A reconciliation of TBV to its most comparable U.S. GAAP measure is included

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below.
◦Since 2016, MVB has increased TBV per share at a compound annual growth rate of just under 16%, which compares favorably to the regional peer average of 10%.
◦Reflecting MVB’s strong capital position and earnings profile as of December 31, 2021, the Company elected to increase the quarterly cash dividend to $0.15 per share for the fourth quarter of 2021, up $0.01 (or 7%) from the third quarter of 2021.

INCOME STATEMENT
On a fully tax-equivalent basis, net interest margin for the quarter ended December 31, 2021 was 3.28%, an increase of three basis points versus the quarter ended September 30, 2021 and a decrease of 16 basis points versus the quarter ended December 31, 2020. Please 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. The tax-equivalent adjustments impacting net interest income were $0.3 million for the quarter ended December 31, 2021, $0.3 million for the quarter ended September 30, 2021 and $0.4 million for the quarter ended December 31, 2020.

Interest income increased $2.6 million, or 13%, compared to the quarter ended September 30, 2021 and increased $3.7 million, or 19%, compared to the quarter ended December 31, 2020. The tax-equivalent yield on commercial loans increased 45 basis points compared to the quarter ended September 30, 2021. The decreases of 158 and 95 basis points in the yield on real estate loans and investments, respectively, drove the 24 basis point decrease in the tax-equivalent yield on earning assets compared to the quarter ended December 31, 2020.

Interest expense increased $0.2 million, or 11%, compared to the quarter ended September 30, 2021 and decreased $0.1 million, or 7%, compared to the quarter ended December 31, 2020. The increase compared to the quarter ended September 30, 2021 was the result of an increase of $0.3 million in interest on subordinated debt. Despite an increase in average deposits of $227.5 million during the quarter, interest on deposits decreased $0.1 million during the quarter, as NIB deposits grew as a percentage of total deposits and cost of interest-bearing deposits decreased.

MVB Bank's average NIB deposits increased by $239.6 million from the quarter ended September 30, 2021, maintaining a 19 basis point favorable spread on the tax-equivalent net interest margin for the quarter ended December 31, 2021, compared to a 16 basis point favorable spread for the quarter ended September 30, 2021. An increase in MVB Bank’s average NIB deposits of $406.0 million from the quarter ended December 31, 2020 helped to maintain a 19 basis point favorable spread on the tax-equivalent net interest margin for the quarter

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ended December 31, 2021, compared to a 18 basis point favorable spread for the same period in 2020.

Noninterest income totaled $14.5 million for the quarter ended December 31, 2021, a decrease of $7.4 million, or 34%, from the quarter ended September 30, 2021 and a decrease of $2.0 million, or 12%, from the quarter ended December 31, 2020.

The $7.4 million decrease in noninterest income from the quarter ended September 30, 2021 was due primarily to the gain on sale of branches of $10.8 million in the quarter ended September 30, 2021.

The $2.0 million decrease in noninterest income from the quarter ended December 31, 2020 was primarily due to decreases in equity method investment income of $7.7 million and gain on sale of equity securities of $3.5 million, offset by increases in holding gain on equity securities of $1.8 million, compliance consulting income of $2.1 million, payment card and service charge income of $1.3 million, gain on sale of portfolio loans of $1.1 million and other operating income of $2.4 million.

Noninterest expense totaled $29.1 million for the quarter ended December 31, 2021, an increase of $3.3 million, or 13%, from the quarter ended September 30, 2021 and an increase of $8.2 million, or 39%, from the quarter ended December 31, 2020.

The $3.3 million increase in noninterest expense from the quarter ended September 30, 2021 was due to an increase in salaries and employee benefits of $1.6 million, primarily driven by incentive compensation and new hires to further build-out the Fintech vertical at Victor Technologies, Inc. (“Victor”),as well as an increase in professional fees of $1.2 million. Victor makes it faster and more efficient for entities to launch a Fintech program. Its technology simplifies integration for Fintech companies and offers risk tools to banks to help them conduct due diligence, risk assessments, onboarding and oversight of their Fintech clients.

The $8.2 million increase in noninterest expense from the quarter ended December 31, 2020 was primarily due to increases in salaries and employee benefits of $5.8 million and professional fees of $1.4 million.

The efficiency ratio was 80.7% for the quarter ended December 31, 2021, compared to 62.9% and 61.0%% for the quarters ended September 30, 2021 and December 31, 2020, respectively, as a result of our ongoing expansion of our risk management and operations teams in support of Fintech initiatives .


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BALANCE SHEET
Loan balances grew $105.7 million as compared to September 30, 2021 and $416.1 million as compared to December 31, 2020. Included in loans are PPP loans totaling $131.7 million at December 31, 2021, a decrease of $15.6 million, or 11%, from September 30, 2021, and an increase of $49.7 million, or 61%, from December 31, 2020.

The tax-equivalent yield on loans, including PPP loans, was 4.64% for the quarter ended December 31, 2021, an increase of 39 basis points from the quarter ended September 30, 2021 and a decrease of seven basis points from the quarter ended December 31, 2020.

Deposits totaled $2.38 billion as of December 31, 2021, a decrease of $21.3 million, or 1%, from September 30, 2021 and an increase of $395.2 million, or 20%, from December 31, 2020. With NIB deposits as a percentage of total deposits at 47% as of December 31, 2021, the Company’s strategy to evolve MVB Bank’s deposit mix by replacing high-cost deposits with NIB deposits has proved to be successful and viable long-term.

CAPITAL
There was no significant change in regulatory ratios quarter over quarter. The Community Bank Leverage Ratio was 11.6% and 12.0% as of December 31, 2021 and September 30, 2021, respectively. MVB Bank’s Tier 1 Risk-Based Capital Ratio was 15.8% and 15.7% as of December 31, 2021 and September 30, 2021, respectively. The Bank’s Total Risk-Based Capital Ratio was 16.7% and 16.9% as of December 31, 2021 and September 30, 2021, respectively.

ASSET QUALITY
Changes to the outstanding balances of the loan portfolios, the level of recognized charge-offs and the resulting historical loss rates and adjustments to the risk grading of loans within the portfolio are all contributing factors in the provision for loan losses. Nonperforming loans totaled $17.7 million, or 0.9% of total loans, as of December 31, 2021, compared to 1.0% of total loans as of September 30, 2021 and 0.9% of total loans as of

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December 31, 2020. Criticized loans as a percentage of total loans were 5.4%, a decrease of 118 basis points, or 18%, from September 30, 2021, and a decrease of 413 basis points, or 2%, from December 31, 2020.

The release of allowance for loan losses totaled $5.7 million for the quarter ended December 31, 2021, compared to a provision for loan losses of $0.4 million for the quarter ended September 30, 2021 and a provision for loan losses of $0.2 million for the quarter ended December 31, 2020. The $5.7 million release was driven by a $2.6 million release allocated to a single loan, as well as improvements in allocation rates, portfolio risk grades and economic and business factors.

Allowance for loan losses to total loans was 1.0% as of December 31, 2021, a decrease of 45 basis points from September 30, 2021 and a decrease of 80 basis points from December 31, 2020. Excluding PPP loans, allowance for loan losses to total loans was 1.1% as of December 31, 2021.

There were $1.3 million net charge-offs for the quarter ended December 31, 2021, compared to $0.1 million in the quarter ended September 30, 2021 and $0.3 million for the quarter ended December 31, 2020.

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

MVB is a financial holding company headquartered in Fairmont, WV. Through its subsidiary, MVB Bank, and the bank’s subsidiaries, the Company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond.

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
MVB 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 press release that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and are subject to risks

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and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,” “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues” or the negative of those terms or similar expressions. 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 forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity and credit risk; changes in market interest rates; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in financial technology companies; competition; length and severity of the COVID-19 pandemic and its impact on the Company’s business and financial condition; changes in economic, business and political conditions; changes in demand for loan products and deposit flow; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as well as its other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise or correct 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 SEC. 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, President and Chief Financial Officer
(304) 598-3500
drobinson@mvbbanking.com

Amy Baker, VP, Corporate Communications and Marketing
(844) 682-2265
abaker@mvbbanking.com

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MVB Financial Corp.
Financial Highlights
Consolidated Statements of Income
(Unaudited) (Dollars in thousands, except per share data)
QuarterlyYear-to-Date
20212021202020212020
Fourth QuarterThird QuarterFourth Quarter
Interest income$23,049 $20,484 $19,353 $83,429 $80,453 
Interest expense1,546 1,388 1,666 6,270 11,627 
Net interest income21,503 19,096 17,687 77,159 68,826 
Provision (release of allowance) for loan losses(5,733)380 214 (6,275)16,579 
Net interest income after provision (release of allowance) for loan losses27,236 18,716 17,473 83,434 52,247 
Noninterest income14,542 21,951 16,576 62,596 91,837 
Noninterest expense:
Salaries and employee benefits18,110 16,528 12,269 60,210 61,629 
Other expense10,993 9,301 8,618 37,242 35,512 
Total noninterest expenses29,103 25,829 20,887 97,452 97,141 
Income before income taxes12,675 14,838 13,162 48,578 46,943 
Income tax expense2,876 3,164 1,324 9,882 9,532 
Net income before noncontrolling interest9,799 11,674 11,838 38,696 37,411 
Net loss attributable to noncontrolling interest160 154 — 425 — 
Net income attributable to parent9,959 11,828 11,838 39,121 37,411 
Preferred dividends— — 116 35 461 
Net income available to common shareholders$9,959 $11,828 $11,722 $39,086 $36,950 
Earnings per share - basic$0.83 $1.00 $1.00 $3.32 $3.13 
Earnings per share - diluted$0.77 $0.92 $0.97 $3.10 $3.06 


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Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)
December 31, 2021September 30, 2021December 31, 2020
Cash and cash equivalents$307,437 $390,081 $263,893 
Certificates of deposit with banks2,719 9,582 11,803 
Investment securities available-for-sale421,466 439,023 410,624 
Equity securities32,402 29,809 27,585 
Loans held-for-sale— — 1,062 
Loans receivable1,869,838 1,764,186 1,453,744 
     Allowance for loan losses(18,266)(25,187)(25,844)
Loans receivable, net1,851,572 1,738,999 1,427,900 
Premises and equipment, net25,052 25,043 26,203 
Goodwill3,988 3,988 2,350 
Other assets143,708 152,299 160,056 
Total assets$2,788,344 $2,788,824 $2,331,476 
Noninterest-bearing deposits$1,120,433 $999,328 $715,791 
Interest-bearing deposits1,257,172 1,399,612 1,266,598 
Subordinated debt73,030 72,966 43,407 
Other liabilities62,406 50,218 66,197 
Stockholders' equity, including noncontrolling interest275,303 266,700 239,483 
Total liabilities and stockholders' equity$2,788,344 $2,788,824 $2,331,476 

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Reportable Segments
(Unaudited)
Twelve Months Ended December 31, 2021CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$83,023 $411 $15 $(8)$(12)$83,429 
Interest expense4,078 — 2,188 16 (12)6,270 
Net interest income78,945 411 (2,173)(24)— 77,159 
Release of allowance for loan losses(6,274)(1)— — — (6,275)
Net interest income after release of allowance for loan losses85,219 412 (2,173)(24)— 83,434 
Total noninterest income33,179 16,342 11,103 15,002 (13,030)62,596 
Noninterest Expenses:
Salaries and employee benefits33,595 — 13,704 12,911 — 60,210 
Other expense37,033 16 6,573 6,650 (13,030)37,242 
Total noninterest expenses70,628 16 20,277 19,561 (13,030)97,452 
Income (loss) before income taxes47,770 16,738 (11,347)(4,583)— 48,578 
Income tax expense (benefit)9,154 4,068 (2,091)(1,249)— 9,882 
Net income (loss) before noncontrolling interest38,616 12,670 (9,256)(3,334)— 38,696 
Net loss attributable to noncontrolling interest— — — (425)— (425)
Net income (loss) attributable to parent38,616 12,670 (9,256)(2,909)— 39,121 
Preferred stock dividends— — 35 — — 35 
Net income (loss) available to common shareholders$38,616 $12,670 $(9,291)$(2,909)$— $39,086 





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Twelve Months Ended December 31, 2020CoRe BankingMortgage BankingFinancial Holding CompanyOtherIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$75,812 $6,269 $3 $— $(1,631)$80,453 
Interest expense10,400 3,139 261 — (2,173)11,627 
Net interest income65,412 3,130 (258)— 542 68,826 
Provision (release of allowance) for loan losses16,649 (70)— — 16,579 
Net interest income after provision (release of allowance) for loan losses48,763 3,200 (258)— 542 52,247 
Total noninterest income24,420 63,490 6,685 5,909 (8,667)91,837 
Noninterest Expenses:
Salaries and employee benefits25,808 21,550 11,278 2,993 — 61,629 
Other expense31,389 5,074 5,265 1,909 (8,125)35,512 
Total noninterest expenses57,197 26,624 16,543 4,902 (8,125)97,141 
Income (loss) before income taxes15,986 40,066 (10,116)1,007 — 46,943 
Income tax expense (benefit)1,479 9,862 (2,082)273 — 9,532 
Net income (loss)14,507 30,204 (8,034)734 — 37,411 
Preferred stock dividends— — 461 — — 461 
Net income (loss) available to common shareholders$14,507 $30,204 $(8,495)$734 $— $36,950 





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Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
Three Months EndedThree Months EndedThree Months Ended
December 31, 2021September 30, 2021December 31, 2020
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
Assets
Interest-bearing balances with banks$376,667 $141 0.15 %$184,131 $60 0.13 %$266,999 $82 0.12 %
CDs with banks6,998 33 1.87 11,065 52 1.86 11,938 58 1.93 
Investment securities:
     Taxable258,534 573 0.88 238,807 575 0.96 167,968 894 2.12 
     Tax-exempt 2
183,736 1,447 3.12 202,380 1,528 3.00 200,666 1,659 3.29 
Loans and loans held-for-sale: 1
     Commercial 3
1,451,347 17,653 4.83 1,416,236 15,646 4.38 1,136,899 13,763 4.82 
     Tax-exempt 2
5,811 65 4.41 6,678 77 4.57 7,501 92 4.87 
     Real estate320,078 2,153 2.67 297,450 2,282 3.04 287,547 3,073 4.25 
     Consumer32,903 1,306 15.75 16,133 602 14.80 6,053 99 6.51 
Total loans1,810,139 21,177 4.64 1,736,497 18,607 4.25 1,438,000 17,027 4.71 
Total earning assets2,636,074 23,370 3.52 2,372,880 20,822 3.48 2,085,571 19,720 3.76 
Less: Allowance for loan losses(24,977)(24,978)(26,568)
Cash and due from banks6,751 5,922 22,642 
Other assets203,957 200,536 215,716 
     Total assets$2,821,805 $2,554,360 $2,297,361 
Liabilities
Deposits:
     NOW$711,805 $289 0.16 %$743,632 $333 0.18 %$475,707 $446 0.37 %
     Money market checking489,818 221 0.18 433,216 211 0.19 492,519 282 0.23 
     Savings36,455 1 0.01 42,126 — — 50,821 (2)(0.02)
     IRAs6,439 18 1.11 7,302 21 1.14 13,410 49 1.45 
     CDs91,059 263 1.15 121,482 333 1.09 235,412 679 1.15 
Repurchase agreements and federal funds sold11,249 3 0.11 10,941 3 0.11 10,070 4 0.16 
FHLB and other borrowings79 — — 494 6 4.82 19,589 25 0.51 
Subordinated debt72,995 751 4.08 44,460 481 4.29 17,835 183 4.08 
     Total interest-bearing liabilities1,419,899 1,546 0.43 1,403,653 1,388 0.39 1,315,363 1,666 0.50 
Noninterest-bearing demand deposits1,092,520 852,872 686,537 
Other liabilities42,318 36,097 59,841 
     Total liabilities2,554,737 2,292,622 2,061,741 
Stockholders’ equity
Preferred stock597 — 7,334 
Common stock12,878 12,704 12,095 
Paid-in capital142,479 141,246 124,970 
Treasury stock(16,741)(16,741)(5,922)
Retained earnings129,896 122,361 98,046 
Accumulated other comprehensive income (loss)(3,188)1,207 (903)
     Total stockholders’ equity attributable to parent265,921 260,777 235,620 
Noncontrolling interest1,147 961 — 
     Total stockholders’ equity267,068 261,738 235,620 
     Total liabilities and stockholders’ equity$2,821,805 $2,554,360 $2,297,361 
Net interest spread (tax-equivalent)3.09 3.09 3.26 
Net interest income and margin (tax-equivalent) 2
$21,824 3.28 %$19,434 3.25 %$18,054 3.44 %
Less: Tax-equivalent adjustments$(320)$(338)$(367)
Net interest spread3.04 3.03 3.19 
Net interest income and margin$21,503 3.24 %$19,096 3.19 %$17,687 3.37 %
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
2 In 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 following this table.

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3 MVB Bank’s PPP loans totaling $131.7 million, $147.3 million and $82.0 million are included in this amount for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

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Twelve Months EndedTwelve Months Ended
December 31, 2021December 31, 2020
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
Assets
Interest-bearing balances with banks$249,801 $305 0.12 %$125,259 $191 0.15 %
CDs with banks10,406 201 1.93 12,484 246 1.97 
Investment securities:
     Taxable231,450 2,405 1.04 121,607 2,448 2.01 
     Tax-exempt 2
201,532 6,328 3.14 144,389 5,361 3.71 
Loans and loans held-for-sale: 1
     Commercial 3
1,387,273 63,551 4.58 1,136,858 54,434 4.79 
     Tax-exempt 2
6,646 300 4.51 8,966 422 4.70 
     Real estate307,829 9,662 3.14 403,166 18,100 4.49 
     Consumer15,890 2069 13.02 6,973 465 6.67 
Total loans1,717,638 75,582 4.40 1,555,963 73,421 4.72 
Total earning assets2,410,827 84,821 3.52 1,959,702 81,667 4.17 
Less: Allowance for loan losses(25,682)(18,079)
Cash and due from banks13,874 26,460 
Other assets201,893 181,439 
     Total assets$2,600,912 $2,149,522 
Liabilities
Deposits:
     NOW$673,547 $1,612 0.24 %$408,110 $2,521 0.62 %
     Money market checking469,010 883 0.19 458,606 2,680 0.58 
     Savings42,800 5 0.01 45,420 6 0.01 
     IRAs9,674 121 1.25 13,691 218 1.59 
     CDs134,250 1,355 1.01 349,787 4,869 1.39 
Repurchase agreements and federal funds sold10,821 13 0.12 9,856 23 0.23 
FHLB and other borrowings25,275 93 0.37 68,407 1,049 1.53 
Subordinated debt51,149 2,188 4.28 7,568 261 3.45 
     Total interest-bearing liabilities1,416,526 6,270 0.44 1,361,445 11,627 0.85 
Noninterest-bearing demand deposits895,024 502,457 
Other liabilities38,090 61,169 
     Total liabilities2,349,640 1,925,071 
Stockholders’ equity
Preferred stock730 7,334 
Common stock12,614 12,047 
Paid-in capital140,610 130,312 
Treasury stock(16,741)(2,637)
Retained earnings112,842 77,044 
Accumulated other comprehensive income (loss)534 351 
     Total stockholders’ equity attributable to parent250,589 224,451 
Noncontrolling interest683 — 
     Total stockholders’ equity251,272 224,451 
     Total liabilities and stockholders’ equity$2,600,912 $2,149,522 
Net interest spread (tax-equivalent)3.08 3.32 
Net interest income and margin (tax-equivalent) 2
$78,551 3.26 %$70,040 3.57 %
Less: Tax-equivalent adjustments$(1,392)$(1,214)
Net interest spread3.02 3.25 
Net interest income and margin$77,159 3.20 %$68,826 3.51 %
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
2 In 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 following this table.
3 MVB Bank’s PPP loans totaling $131.7 million and $82.0 million are included in this amount for the years ended December 31, 2021 and December 31, 2020, respectively.


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The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:
Three Months EndedTwelve Months Ended
(Dollars in thousands)December 31, 2021September 30, 2021December 31, 2020December 31, 2021December 31, 2020
Net interest margin - U.S. GAAP basis
Net interest income$21,503 $19,096 $17,687 $77,159 $68,826 
Average interest-earning assets2,636,074 2,372,880 2,085,571 2,410,827 1,959,702 
Net interest margin3.24 %3.19 %3.37 %3.20 %3.51 %
Net interest margin - non-U.S. GAAP basis
Net interest income$21,503 $19,096 $17,687 $77,159 $68,826 
Impact of fully tax-equivalent adjustment320 338 367 1,392 1,214 
Net interest income on a fully tax-equivalent basis21,824 19,434 18,054 78,551 70,040 
Average interest-earning assets2,636,074 2,372,880 2,085,571 2,410,827 1,959,702 
Net interest margin on a fully tax-equivalent basis3.28 %3.25 %3.44 %3.26 %3.57 %

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Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)
QuarterlyYear-to-Date
20212021202020212020
Fourth QuarterThird QuarterFourth Quarter
Earnings and Per Share Data:
Net income$9,959 $11,828 $11,838 39,121 37,411 
Net income available to common shareholders$9,959 $11,828 $11,722 39,086 36,950 
Earnings per share - basic$0.83 $1.00 $1.00 $3.32 $3.13 
Earnings per share - diluted$0.77 $0.92 $0.97 $3.10 $3.06 
Cash dividends paid per common share$0.15 $0.14 $0.09 $0.51 $0.36 
Book value per common share$22.70 $22.18 $20.14 $22.70 $20.14 
Tangible book value per common share 1
$22.17 $21.64 $19.73 $22.17 $19.73 
Weighted-average shares outstanding - basic12,057,451 11,880,348 11,752,841 11,778,557 11,821,574 
Weighted-average shares outstanding - diluted12,944,919 12,824,309 12,144,471 12,613,620 12,088,106 
Performance Ratios:
Return on average assets 2
1.4 %1.9 %2.1 %1.5 %1.7 %
Return on average equity 2
15.0 %18.1 %20.1 %15.6 %16.7 %
Net interest margin 3 4
3.28 %3.25 %3.44 %3.26 %3.57 %
Efficiency ratio 5
80.7 %62.9 %61.0 %69.7 %60.5 %
Overhead ratio 2 6
4.1 %4.0 %3.6 %3.7 %4.5 %
Equity to assets9.8 %9.5 %10.3 %9.8 %10.3 %
Asset Quality Data and Ratios:
Charge-offs$1,619 $98 $300 $1,619 $2,190 
Recoveries$316 $23 $16 $316 $33 
Net loan charge-offs to total loans 2 7
0.1 %— %0.1 %0.1 %0.1 %
Allowance for loan losses$18,266 $25,187 $25,844 $18,266 $25,844 
Allowance for loan losses to total loans 8
1.0 %1.4 %1.8 %1.0 %1.8 %
Nonperforming loans$17,713 $17,453 $13,713 $17,713 $13,713 
Nonperforming loans to total loans0.9 %1.0 %0.9 %0.9 %0.9 %
Intercoastal Mortgage Company, LLC Production Data9:
Mortgage pipeline$1,007,990 $1,150,116 $1,536,826 $1,007,990 $1,536,826 
Loans originated$1,046,977 $1,456,588 $4,461,922 $6,269,371 $4,461,922 
Loans closed$977,354 $1,233,605 $3,468,646 $5,607,951 $3,468,646 
Loans sold$957,153 $1,098,475 $2,948,724 $5,326,029 $2,948,724 
1 common equity less total goodwill and intangibles per common share, a non-U.S. GAAP measure
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
5 noninterest expense as a percentage of net interest income and noninterest income, a non-U.S. GAAP measure
6 noninterest expense as a percentage of average assets, a non-U.S. GAAP measure
7 charge-offs less recoveries
8 excludes loans held for sale
9 information is related to Intercoastal Mortgage Company, LLC, an entity in which we have a 40% ownership interest that we account for as an equity method investment



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Non-GAAP Reconciliation: Tangible Book Value per Common Share
(Unaudited) (Dollars in thousands, except per share data)
Year-to-Date
December 31, 2021September 30, 2021December 31, 2020
Goodwill$3,988 $3,988 $2,350 
Intangibles2,316 2,518 2,400 
Total intangibles6,304 6,506 4,750 
Total equity attributable to parent274,328 265,565 239,483 
Less: Preferred equity— — (7,334)
Less: Total intangibles(6,304)(6,506)(4,750)
Tangible common equity268,024 259,059 227,399 
Tangible common equity268,024 259,059 227,399 
Common shares outstanding (000s)12,08711,97211,526
Tangible book value per common share$22.17 $21.64 $19.73 

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