MVB Financial Corp. Announces Second Quarter 2024 Results
Second Quarter 2024 Highlights
MVB names payments industry veteran
MVB and Intuit-Credit Karma renew partnership agreement.
Exit of digital asset program account relationships during second quarter reduced EPS by
Noninterest bearing deposits represent 34.1% of total deposits | Loan-to-deposit ratio of 76.5%.
Noninterest expense declined 4.2% from prior quarter on easing cost pressures.
From
“There were several notable developments during the second quarter that impacted our near-term financial results, while also helping to solidify our strategy, setting the stage for future growth and improved profitability.
“First, we have extended the term of our partnership agreement with Intuit-Credit Karma, the consumer technology platform with more than 120 million members in the
“Second, as previously disclosed,
“Finally, we initiated the process of winding down MVB’s digital asset program account relationships. Changing market conditions and profitability challenges contributed to an unfavorable risk/reward dynamic, prompting our decision to exit this business. This action reduced our second quarter EPS by
“MVB’s second quarter financial results were otherwise solid, marked by improved expense control, shareholder value creation in the form of tangible book value per share growth, improved measures of capital strength and seasonal considerations, primarily related to MVB’s banking-as-a-service operations and online gaming vertical. We are pleased with the strength of our liquidity, despite the low seasonality and exit of digital asset program account relationships.”
SECOND QUARTER 2024 HIGHLIGHTS
-
Deposit trends reflect wind down of digital asset program account relationships and expected seasonal factors.
-
The Company expected a decline in total deposits upon the conclusion of the NFL, college basketball and tax seasons, in addition to electing to exit digital asset program account relationships. Total deposits declined 8.3%, or
$262.5 million , to$2.9 billion compared to the prior quarter-end, primarily reflecting lower noninterest bearing (“NIB”) deposits, which decreased 29.3%, or$407.3 million , to$983.8 million . Digital asset program account balances, which are noninterest bearing, declined$307.0 million to$28.1 million as compared to the prior quarter-end. -
The loan-to-deposit ratio was 76.5% as of
June 30, 2024 , compared to 72.1% as ofMarch 31, 2024 , and 78.1% as ofJune 30, 2023 . The loan-to-deposit ratio atJune 30, 2024 aligns with the Company’s liquidity management strategy.
-
The Company expected a decline in total deposits upon the conclusion of the NFL, college basketball and tax seasons, in addition to electing to exit digital asset program account relationships. Total deposits declined 8.3%, or
-
Net interest income lower on margin compression, deliberate balance sheet contraction, decline in loan balances and seasonal factors.
-
Net interest income on a fully tax-equivalent basis, a non-
U.S. GAAP financial measure, declined 8.6%, or$2.6 million , to$27.7 million relative to the prior quarter, reflecting net interest margin contraction and lower earning asset balances. -
Net interest margin on a fully tax-equivalent basis was 3.75%, down eight basis points from the prior quarter, primarily reflecting lower loan yields due to the migration of a
$14.6 million loan to nonperforming status, lower loan balances and slightly higher funding costs. Total cost of funds was 2.54%, up two basis points compared to the prior quarter. - Average earning asset balances declined 6.7% from the prior quarter, reflecting lower interest-bearing balances with banks and lower loan balances. The decline in cash balances primarily reflects the deliberate exiting of digital asset program account balances and, to a lesser extent, seasonal considerations related to tax and gaming deposits. Average total loan balances declined 2.0% from the prior quarter, reflecting slower market demand.
-
Net interest income on a fully tax-equivalent basis, a non-
-
Expenses decline as cost pressures ease.
-
Noninterest expense declined 4.2% to
$28.9 million relative to the prior quarter, primarily reflecting lower salaries and employee benefits costs and lower professional fees. Relative to the prior year-ago period, noninterest expense declined 4.5%.
-
Noninterest expense declined 4.2% to
-
Noninterest income down on seasonal considerations and the exit of digital asset program relationships; mortgage banking profitable.
-
Total noninterest income declined 8.8%, or
$0.7 million , relative to the prior quarter, to$7.1 million , primarily reflecting lower payment card and service charge income and other operating income, which includes wire transfer fees. The declines were partially offset by equity method investment income from our mortgage segment, compared to a loss in the prior quarter, and higher compliance and consulting income. Relative to the prior year, which removes the seasonal component, total noninterest income grew 11.3%, or$0.7 million , reflecting higher payment card and service charge income, compliance and consulting income, combined with losses on divestiture activity, loan sales and the sale of equity securities that did not recur in the current quarter.
-
Total noninterest income declined 8.8%, or
-
Capital strength further enhanced; tangible book value share growth evidences continued value creation.
-
The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 10.7%, 14.6% and 15.4%, respectively, compared to 10.1%, 14.4% and 15.2%, respectively, at the prior quarter end. The tangible common equity ratio, a non-
U.S. GAAP financial measure, was 8.9% as ofJune 30, 2024 , compared to 8.1% as ofMarch 31, 2024 , andJune 30, 2023 . -
Book value per share and tangible book value per share, a non-
U.S. GAAP measure discussed below, were$22.94 and$22.70 , respectively, increases of 0.9% and 1.0% relative to the prior quarter-end and 6.4% and 6.5% from the year-ago period. -
Nonperforming loans increased
$15.6 million , or 206.1%, to$23.1 million , or 1.0% of total loans, from$7.5 million , or 0.3% of total loans, at the prior quarter end, largely reflecting the addition of a multifamily commercial construction loan with an outstanding balance of$14.6 million . Criticized loans as a percentage of total loans were 5.7%, as compared to 5.8% at the prior quarter end. Net charge-offs were$0.9 million , or 0.2%, for the second quarter of 2024, compared to$1.3 million , or 0.2%, for the prior quarter. -
The provision for credit losses totaled
$0.3 million , compared to$2.0 million for the prior quarter. The allowance for credit losses was 1.00% of total loans, as compared to 1.01% at the prior quarter end.
-
The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 10.7%, 14.6% and 15.4%, respectively, compared to 10.1%, 14.4% and 15.2%, respectively, at the prior quarter end. The tangible common equity ratio, a non-
INCOME STATEMENT
Net interest income on a tax-equivalent basis totaled
Interest income declined
Interest expense declined
On a tax-equivalent basis, net interest margin for the second quarter of 2024 was 3.75%, a decline of eight basis points versus the first quarter of 2024 and five basis points versus the second quarter of 2023. See the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-
Noninterest income totaled
Noninterest expense totaled
BALANCE SHEET
Loans totaled
Deposits totaled
NIB deposits totaled
Off-balance sheet deposits totaled
CAPITAL
The Community Bank Leverage Ratio was 10.7% as of
The tangible common equity ratio, a non-
The Company issued a quarterly cash dividend of
ASSET QUALITY
Nonperforming loans totaled
Net charge-offs were
The provision for credit losses totaled
About
MVB is a financial holding company headquartered in
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
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
Non-
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in
Financial Highlights Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) |
|||||||||||||||||||
|
|
Quarterly |
|
Year-to-Date |
|||||||||||||||
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Second
|
|
First
|
|
Second
|
|
|
|||||||||||
Interest income |
|
$ |
46,127 |
|
|
$ |
50,030 |
|
|
$ |
47,031 |
|
|
$ |
96,157 |
|
|
$ |
91,794 |
Interest expense |
|
|
18,557 |
|
|
|
19,891 |
|
|
|
17,449 |
|
|
|
38,448 |
|
|
|
29,483 |
Net interest income |
|
|
27,570 |
|
|
|
30,139 |
|
|
|
29,582 |
|
|
|
57,709 |
|
|
|
62,311 |
Provision (release of allowance) for credit losses |
|
|
254 |
|
|
|
1,997 |
|
|
|
(4,235 |
) |
|
|
2,251 |
|
|
|
341 |
Net interest income after provision (release of allowance) for credit losses |
|
|
27,316 |
|
|
|
28,142 |
|
|
|
33,817 |
|
|
|
55,458 |
|
|
|
61,970 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total noninterest income |
|
|
7,142 |
|
|
|
7,834 |
|
|
|
6,419 |
|
|
|
14,976 |
|
|
|
9,486 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and employee benefits |
|
|
15,949 |
|
|
|
16,489 |
|
|
|
15,746 |
|
|
|
32,438 |
|
|
|
32,492 |
Other expense |
|
|
12,981 |
|
|
|
13,702 |
|
|
|
14,536 |
|
|
|
26,683 |
|
|
|
26,107 |
Total noninterest expenses |
|
|
28,930 |
|
|
|
30,191 |
|
|
|
30,282 |
|
|
|
59,121 |
|
|
|
58,599 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
|
|
5,528 |
|
|
|
5,785 |
|
|
|
9,954 |
|
|
|
11,313 |
|
|
|
12,857 |
Income taxes |
|
|
1,379 |
|
|
|
1,283 |
|
|
|
1,956 |
|
|
|
2,662 |
|
|
|
2,421 |
Net income from continuing operations, before noncontrolling interest |
|
|
4,149 |
|
|
|
4,502 |
|
|
|
7,998 |
|
|
|
8,651 |
|
|
|
10,436 |
Income from discontinued operations, before income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,831 |
Income taxes - discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,049 |
Net income from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,782 |
Net Income, before noncontrolling interest |
|
|
4,149 |
|
|
|
4,502 |
|
|
|
7,998 |
|
|
|
8,651 |
|
|
|
19,218 |
Net (income) loss attributable to noncontrolling interest |
|
|
(60 |
) |
|
|
(20 |
) |
|
|
114 |
|
|
|
(80 |
) |
|
|
236 |
Net income available to common shareholders |
|
$ |
4,089 |
|
|
$ |
4,482 |
|
|
$ |
8,112 |
|
|
$ |
8,571 |
|
|
$ |
19,454 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share from continuing operations - basic |
|
$ |
0.32 |
|
|
$ |
0.35 |
|
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
0.84 |
Earnings per share from discontinued operations - basic |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.69 |
Earnings per share - basic |
|
$ |
0.32 |
|
|
$ |
0.35 |
|
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
1.54 |
Earnings per share from continuing operations - diluted |
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.63 |
|
|
$ |
0.66 |
|
|
$ |
0.82 |
Earnings per share from discontinued operations - diluted |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.68 |
Earnings per share - diluted |
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.63 |
|
|
$ |
0.66 |
|
|
$ |
1.50 |
Noninterest Income (Unaudited) (Dollars in thousands) |
|||||||||||||||||||
|
|
Quarterly |
|
Year-to-Date |
|||||||||||||||
|
|
2024 |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
Second
|
|
First
|
|
Second
|
|
|
|||||||||||
Card acquiring income |
|
$ |
337 |
|
$ |
251 |
|
|
$ |
788 |
|
|
$ |
588 |
|
|
$ |
1,410 |
|
Service charges on deposits |
|
|
1,103 |
|
|
1,523 |
|
|
|
1,060 |
|
|
|
2,626 |
|
|
|
2,186 |
|
Interchange income |
|
|
2,377 |
|
|
3,039 |
|
|
|
1,655 |
|
|
|
5,416 |
|
|
|
3,517 |
|
Total payment card and service charge income |
|
|
3,817 |
|
|
4,813 |
|
|
|
3,503 |
|
|
|
8,630 |
|
|
|
7,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity method investments gain (loss) |
|
|
484 |
|
|
(1,128 |
) |
|
|
1,873 |
|
|
|
(644 |
) |
|
|
680 |
|
Compliance and consulting income |
|
|
1,274 |
|
|
1,000 |
|
|
|
996 |
|
|
|
2,274 |
|
|
|
2,012 |
|
Loss on sale of loans |
|
|
— |
|
|
— |
|
|
|
(989 |
) |
|
|
— |
|
|
|
(1,345 |
) |
Investment portfolio gains (losses) |
|
|
117 |
|
|
609 |
|
|
|
(134 |
) |
|
|
726 |
|
|
|
(1,978 |
) |
Loss on acquisition and divestiture activity |
|
|
— |
|
|
— |
|
|
|
(986 |
) |
|
|
— |
|
|
|
(986 |
) |
Other noninterest income |
|
|
1,450 |
|
|
2,540 |
|
|
|
2,156 |
|
|
|
3,990 |
|
|
|
3,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total noninterest income |
|
$ |
7,142 |
|
$ |
7,834 |
|
|
$ |
6,419 |
|
|
$ |
14,976 |
|
|
$ |
9,486 |
|
Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
455,517 |
|
|
$ |
640,426 |
|
|
$ |
455,835 |
|
Securities available-for-sale, at fair value |
|
|
361,254 |
|
|
|
349,678 |
|
|
|
329,137 |
|
Equity securities |
|
|
41,261 |
|
|
|
41,037 |
|
|
|
41,082 |
|
Loans held-for-sale |
|
|
— |
|
|
|
— |
|
|
|
7,009 |
|
Loans receivable |
|
|
2,206,793 |
|
|
|
2,267,310 |
|
|
|
2,312,387 |
|
Less: Allowance for credit losses |
|
|
(22,084 |
) |
|
|
(22,804 |
) |
|
|
(30,294 |
) |
Loans receivable, net |
|
|
2,184,709 |
|
|
|
2,244,506 |
|
|
|
2,282,093 |
|
Premises and equipment, net |
|
|
19,540 |
|
|
|
19,968 |
|
|
|
22,407 |
|
Other assets |
|
|
225,723 |
|
|
|
251,775 |
|
|
214,284 |
|
|
Total assets |
|
$ |
3,288,004 |
|
|
$ |
3,547,390 |
|
|
$ |
3,351,847 |
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing deposits |
|
$ |
983,809 |
|
|
$ |
1,391,070 |
|
|
$ |
987,555 |
|
Interest-bearing deposits |
|
|
1,899,043 |
|
|
|
1,754,259 |
|
|
|
1,971,384 |
|
Senior term loan |
|
|
— |
|
|
|
6,549 |
|
|
|
8,835 |
|
Subordinated debt |
|
|
73,663 |
|
|
|
73,602 |
|
|
|
73,414 |
|
Other liabilities |
|
|
34,826 |
|
|
|
30,082 |
|
|
36,362 |
|
|
Stockholders' equity |
|
|
296,663 |
|
|
|
291,828 |
|
|
|
274,297 |
|
Total liabilities and stockholders' equity |
|
$ |
3,288,004 |
|
|
$ |
3,547,390 |
|
|
$ |
3,351,847 |
|
Reportable Segments (Unaudited) |
||||||||||||||||||||||
Three Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
||||||||||||||||
Interest income |
|
$ |
46,038 |
|
$ |
103 |
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
46,127 |
|
Interest expense |
|
|
17,635 |
|
|
— |
|
|
922 |
|
|
|
17 |
|
|
|
(17 |
) |
|
|
18,557 |
|
Net interest income (expense) |
|
|
28,403 |
|
|
103 |
|
|
(919 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
27,570 |
|
Provision for credit losses |
|
|
254 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
254 |
|
Net interest income (expense) after provision for credit losses |
|
|
28,149 |
|
|
103 |
|
|
(919 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
27,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest income |
|
|
4,898 |
|
|
485 |
|
|
2,769 |
|
|
|
3,128 |
|
|
|
(4,138 |
) |
|
|
7,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
|
9,359 |
|
|
— |
|
|
4,473 |
|
|
|
2,117 |
|
|
|
— |
|
|
|
15,949 |
|
Other expenses |
|
|
13,257 |
|
|
— |
|
|
2,080 |
|
|
|
1,782 |
|
|
|
(4,138 |
) |
|
|
12,981 |
|
Total noninterest expenses |
|
|
22,616 |
|
|
— |
|
|
6,553 |
|
|
|
3,899 |
|
|
|
(4,138 |
) |
|
|
28,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss), before income taxes |
|
|
10,431 |
|
|
588 |
|
|
(4,703 |
) |
|
|
(788 |
) |
|
|
— |
|
|
|
5,528 |
|
Income taxes |
|
|
2,438 |
|
|
145 |
|
|
(1,016 |
) |
|
|
(188 |
) |
|
|
— |
|
|
|
1,379 |
|
Net income (loss), before noncontrolling interest |
|
|
7,993 |
|
|
443 |
|
|
(3,687 |
) |
|
|
(600 |
) |
|
|
— |
|
|
|
4,149 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(60 |
) |
|
|
— |
|
|
|
(60 |
) |
Net income (loss) available to common shareholders |
|
$ |
7,993 |
|
$ |
443 |
|
$ |
(3,687 |
) |
|
$ |
(660 |
) |
|
$ |
— |
|
|
$ |
4,089 |
|
Three Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
|||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|||||||||||||||||
Interest income |
|
$ |
49,942 |
|
$ |
103 |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
(17 |
) |
|
$ |
50,030 |
|
Interest expense |
|
|
18,927 |
|
|
— |
|
|
|
959 |
|
|
|
22 |
|
|
|
(17 |
) |
|
|
19,891 |
|
Net interest income (expense) |
|
|
31,015 |
|
|
103 |
|
|
|
(957 |
) |
|
|
(22 |
) |
|
|
— |
|
|
|
30,139 |
|
Provision for credit losses |
|
|
1,997 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,997 |
|
Net interest income (expense) after provision for credit losses |
|
|
29,018 |
|
|
103 |
|
|
|
(957 |
) |
|
|
(22 |
) |
|
|
— |
|
|
|
28,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest income |
|
|
7,521 |
|
|
(1,129 |
) |
|
|
2,265 |
|
|
|
3,264 |
|
|
|
(4,087 |
) |
|
|
7,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
|
|
9,823 |
|
|
— |
|
|
|
4,678 |
|
|
|
1,988 |
|
|
|
— |
|
|
|
16,489 |
|
Other expenses |
|
|
13,821 |
|
|
— |
|
|
|
1,841 |
|
|
|
2,127 |
|
|
|
(4,087 |
) |
|
|
13,702 |
|
Total noninterest expenses |
|
|
23,644 |
|
|
— |
|
|
|
6,519 |
|
|
|
4,115 |
|
|
|
(4,087 |
) |
|
|
30,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income taxes |
|
|
12,895 |
|
|
(1,026 |
) |
|
|
(5,211 |
) |
|
|
(873 |
) |
|
|
— |
|
|
|
5,785 |
|
Income taxes |
|
|
2,878 |
|
|
(229 |
) |
|
|
(1,157 |
) |
|
|
(209 |
) |
|
|
— |
|
|
|
1,283 |
|
Net income (loss), before noncontrolling interest |
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|||||||||
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
|
|
(20 |
) |
Net income (loss) available to common shareholders |
|
$ |
10,017 |
|
$ |
(797 |
) |
|
$ |
(4,054 |
) |
|
$ |
(684 |
) |
|
$ |
— |
|
|
$ |
4,482 |
|
Three Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
|||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|||||||||||||||||
Interest income |
|
$ |
46,929 |
|
|
$ |
105 |
|
$ |
3 |
|
|
$ |
6 |
|
|
$ |
(12 |
) |
|
$ |
47,031 |
|
Interest expense |
|
|
16,439 |
|
|
|
— |
|
|
999 |
|
|
|
23 |
|
|
|
(12 |
) |
|
|
17,449 |
|
Net interest income (expense) |
|
|
30,490 |
|
|
|
105 |
|
|
(996 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
29,582 |
|
Release of allowance for credit losses |
|
|
(4,235 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,235 |
) |
Net interest income (expense) after release of allowance for credit losses |
|
|
34,725 |
|
|
|
105 |
|
|
(996 |
) |
|
|
(17 |
) |
|
|
— |
|
|
|
33,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest income |
|
|
4,113 |
|
|
|
1,872 |
|
|
3,116 |
|
|
|
1,051 |
|
|
|
(3,733 |
) |
|
|
6,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
|
|
9,053 |
|
|
|
7 |
|
|
4,623 |
|
|
|
2,063 |
|
|
|
— |
|
|
|
15,746 |
|
Other expenses |
|
|
14,148 |
|
|
|
18 |
|
|
2,163 |
|
|
|
1,940 |
|
|
|
(3,733 |
) |
|
|
14,536 |
|
Total noninterest expenses |
|
|
23,201 |
|
|
|
25 |
|
|
6,786 |
|
|
|
4,003 |
|
|
|
(3,733 |
) |
|
|
30,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss), before income taxes |
|
|
15,637 |
|
|
|
1,952 |
|
|
(4,666 |
) |
|
|
(2,969 |
) |
|
|
— |
|
|
|
9,954 |
|
Income taxes |
|
|
3,237 |
|
|
|
643 |
|
|
(1,207 |
) |
|
|
(717 |
) |
|
|
— |
|
|
|
1,956 |
|
Net income (loss), before noncontrolling interest |
|
|
12,400 |
|
|
|
1,309 |
|
|
(3,459 |
) |
|
|
(2,252 |
) |
|
|
— |
|
|
|
7,998 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
114 |
|
|
|
— |
|
|
|
114 |
|
Net income (loss) available to common shareholders |
|
$ |
12,400 |
|
|
$ |
1,309 |
|
$ |
(3,459 |
) |
|
$ |
(2,138 |
) |
|
$ |
— |
|
|
$ |
8,112 |
|
Six Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
|||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|||||||||||||||||
Interest income |
|
$ |
95,980 |
|
$ |
206 |
|
|
$ |
5 |
|
|
$ |
— |
|
|
$ |
(34 |
) |
|
$ |
96,157 |
|
Interest expense |
|
|
36,562 |
|
|
— |
|
|
|
1,881 |
|
|
|
39 |
|
|
|
(34 |
) |
|
|
38,448 |
|
Net interest income (expense) |
|
|
59,418 |
|
|
206 |
|
|
|
(1,876 |
) |
|
|
(39 |
) |
|
|
— |
|
|
|
57,709 |
|
Provision for credit losses |
|
|
2,251 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,251 |
|
Net interest income (expense) after provision for credit losses |
|
|
57,167 |
|
|
206 |
|
|
|
(1,876 |
) |
|
|
(39 |
) |
|
|
— |
|
|
|
55,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest income |
|
|
12,419 |
|
|
(644 |
) |
|
|
5,034 |
|
|
|
6,392 |
|
|
|
(8,225 |
) |
|
|
14,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
|
|
19,182 |
|
|
— |
|
|
|
9,151 |
|
|
|
4,105 |
|
|
|
— |
|
|
|
32,438 |
|
Other expenses |
|
|
27,078 |
|
|
— |
|
|
|
3,921 |
|
|
|
3,909 |
|
|
|
(8,225 |
) |
|
|
26,683 |
|
Total noninterest expenses |
|
|
46,260 |
|
|
— |
|
|
|
13,072 |
|
|
|
8,014 |
|
|
|
(8,225 |
) |
|
|
59,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss), before income taxes |
|
|
23,326 |
|
|
(438 |
) |
|
|
(9,914 |
) |
|
|
(1,661 |
) |
|
|
— |
|
|
|
11,313 |
|
Income taxes |
|
|
5,316 |
|
|
(84 |
) |
|
|
(2,173 |
) |
|
|
(397 |
) |
|
|
— |
|
|
|
2,662 |
|
Net income (loss), before noncontrolling interest |
|
|
18,010 |
|
|
(354 |
) |
|
|
(7,741 |
) |
|
|
(1,264 |
) |
|
|
— |
|
|
|
8,651 |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(80 |
) |
|
|
— |
|
|
|
(80 |
) |
Net income (loss) available to common shareholders |
|
$ |
18,010 |
|
$ |
(354 |
) |
|
$ |
(7,741 |
) |
|
$ |
(1,344 |
) |
|
$ |
— |
|
|
$ |
8,571 |
|
Six Months Ended |
|
CoRe
|
|
Mortgage
|
|
Financial
|
|
Other |
|
Intercompany
|
|
Consolidated |
|||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|||||||||||||||
Interest income |
|
$ |
91,591 |
|
$ |
210 |
|
$ |
36 |
|
|
$ |
— |
|
|
$ |
(43 |
) |
|
$ |
91,794 |
Interest expense |
|
|
27,480 |
|
|
— |
|
|
1,992 |
|
|
|
54 |
|
|
|
(43 |
) |
|
|
29,483 |
Net interest income (expense) |
|
|
64,111 |
|
|
210 |
|
|
(1,956 |
) |
|
|
(54 |
) |
|
|
— |
|
|
|
62,311 |
Provision for credit losses |
|
|
341 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
341 |
Net interest income (expense) after provision for credit losses |
|
|
63,770 |
|
|
210 |
|
|
(1,956 |
) |
|
|
(54 |
) |
|
|
— |
|
|
|
61,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest income |
|
|
7,131 |
|
|
686 |
|
|
5,526 |
|
|
|
2,835 |
|
|
|
(6,692 |
) |
|
|
9,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries and employee benefits |
|
|
18,104 |
|
|
7 |
|
|
9,573 |
|
|
|
4,808 |
|
|
|
— |
|
|
|
32,492 |
Other expenses |
|
|
25,202 |
|
|
52 |
|
|
4,080 |
|
|
|
3,465 |
|
|
|
(6,692 |
) |
|
|
26,107 |
Total noninterest expenses |
|
|
43,306 |
|
|
59 |
|
|
13,653 |
|
|
|
8,273 |
|
|
|
(6,692 |
) |
|
|
58,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income (loss), before income taxes |
|
|
27,595 |
|
|
837 |
|
|
(10,083 |
) |
|
|
(5,492 |
) |
|
|
— |
|
|
|
12,857 |
Income taxes |
|
|
5,752 |
|
|
139 |
|
|
(2,149 |
) |
|
|
(1,321 |
) |
|
|
— |
|
|
|
2,421 |
Net income (loss) from continuing operations |
|
|
21,843 |
|
|
698 |
|
|
(7,934 |
) |
|
|
(4,171 |
) |
|
|
— |
|
|
|
10,436 |
Income from discontinued operations, before income taxes |
|
|
— |
|
|
— |
|
|
— |
|
|
|
11,831 |
|
|
|
— |
|
|
|
11,831 |
Income tax expense - discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,049 |
|
|
|
— |
|
|
|
3,049 |
Net income from discontinued operations |
|
|
— |
|
|
— |
|
|
— |
|
|
|
8,782 |
|
|
|
— |
|
|
|
8,782 |
Net income (loss), before noncontrolling interest |
|
|
21,843 |
|
|
698 |
|
|
(7,934 |
) |
|
|
4,611 |
|
|
|
— |
|
|
|
19,218 |
Net loss attributable to noncontrolling interest |
|
|
— |
|
|
— |
|
|
— |
|
|
|
236 |
|
|
|
— |
|
|
|
236 |
Net income (loss) available to common shareholders |
|
$ |
21,843 |
|
$ |
698 |
|
$ |
(7,934 |
) |
|
$ |
4,847 |
|
|
$ |
— |
|
|
$ |
19,454 |
Average Balances and Interest Rates (Unaudited) (Dollars in thousands) |
|||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
|||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing balances with banks |
|
$ |
380,278 |
|
|
$ |
5,065 |
|
|
5.36 |
% |
|
$ |
549,894 |
|
|
$ |
7,341 |
|
|
5.37 |
% |
|
$ |
444,600 |
|
|
$ |
5,542 |
|
|
5.00 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable |
|
|
252,963 |
|
|
|
1,905 |
|
|
3.03 |
|
|
|
246,091 |
|
|
|
1,743 |
|
|
2.85 |
|
|
|
220,687 |
|
|
|
1,229 |
|
|
2.23 |
|
Tax-exempt 1 |
|
|
102,785 |
|
|
|
684 |
|
|
2.68 |
|
|
|
106,309 |
|
|
|
887 |
|
|
3.36 |
|
|
|
123,497 |
|
|
|
1,147 |
|
|
3.73 |
|
Loans and loans held-for-sale: 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial |
|
|
1,597,359 |
|
|
|
30,824 |
|
|
7.76 |
|
|
|
1,626,286 |
|
|
|
32,152 |
|
|
7.95 |
|
|
|
1,635,438 |
|
|
|
30,534 |
|
|
7.49 |
|
Tax-exempt 1 |
|
|
3,261 |
|
|
|
35 |
|
|
4.32 |
|
|
|
3,373 |
|
|
|
37 |
|
|
4.41 |
|
|
|
3,822 |
|
|
|
42 |
|
|
4.41 |
|
Real estate |
|
|
563,011 |
|
|
|
6,391 |
|
|
4.57 |
|
|
|
576,148 |
|
|
|
6,612 |
|
|
4.62 |
|
|
|
593,767 |
|
|
|
5,691 |
|
|
3.84 |
|
Consumer |
|
|
73,531 |
|
|
|
1,374 |
|
|
7.52 |
|
|
|
77,300 |
|
|
|
1,452 |
|
|
7.55 |
|
|
|
128,113 |
|
|
|
3,096 |
|
|
9.69 |
|
Total loans |
|
|
2,237,162 |
|
|
|
38,624 |
|
|
6.94 |
|
|
|
2,283,107 |
|
|
|
40,253 |
|
|
7.09 |
|
|
|
2,361,140 |
|
|
|
39,363 |
|
|
6.69 |
|
Total earning assets |
|
|
2,973,188 |
|
|
|
46,278 |
|
|
6.26 |
|
|
|
3,185,401 |
|
|
|
50,224 |
|
|
6.34 |
|
|
|
3,149,924 |
|
|
|
47,281 |
|
|
6.02 |
|
Less: Allowance for credit losses |
|
|
(22,596 |
) |
|
|
|
|
|
|
(22,258 |
) |
|
|
|
|
|
|
(35,143 |
) |
|
|
|
|
|||||||||
Cash and due from banks |
|
|
4,528 |
|
|
|
|
|
|
|
5,405 |
|
|
|
|
|
|
|
5,756 |
|
|
|
|
|
|||||||||
Other assets |
|
|
305,644 |
|
|
|
|
|
|
|
335,029 |
|
|
|
|
|
|
|
289,161 |
|
|
|
|
|
|||||||||
Total assets |
|
$ |
3,260,764 |
|
|
|
|
|
|
$ |
3,503,577 |
|
|
|
|
|
|
$ |
3,409,698 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW |
|
$ |
465,587 |
|
|
$ |
4,139 |
|
|
3.58 |
% |
|
$ |
555,530 |
|
|
$ |
4,929 |
|
|
3.57 |
% |
|
$ |
682,277 |
|
|
$ |
4,816 |
|
|
2.83 |
% |
Money market checking |
|
|
400,205 |
|
|
|
3,337 |
|
|
3.35 |
|
|
|
408,764 |
|
|
|
3,759 |
|
|
3.70 |
|
|
|
615,962 |
|
|
|
2,439 |
|
|
1.59 |
|
Savings |
|
|
112,225 |
|
|
|
944 |
|
|
3.38 |
|
|
|
163,611 |
|
|
|
1,640 |
|
|
4.03 |
|
|
|
72,289 |
|
|
|
351 |
|
|
1.95 |
|
IRAs |
|
|
7,948 |
|
|
|
81 |
|
|
4.10 |
|
|
|
7,762 |
|
|
|
74 |
|
|
3.83 |
|
|
|
6,401 |
|
|
|
45 |
|
|
2.82 |
|
CDs |
|
|
731,337 |
|
|
|
9,130 |
|
|
5.02 |
|
|
|
674,611 |
|
|
|
8,529 |
|
|
5.08 |
|
|
|
662,753 |
|
|
|
8,799 |
|
|
5.33 |
|
Repurchase agreements and federal funds sold |
|
|
3,459 |
|
|
|
4 |
|
|
0.47 |
|
|
|
2,951 |
|
|
|
— |
|
|
— |
|
|
|
5,428 |
|
|
|
— |
|
|
— |
|
FHLB and other borrowings |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
44 |
|
|
|
1 |
|
|
9.14 |
|
|
|
158 |
|
|
|
— |
|
|
— |
|
Senior term loan 3 |
|
|
2,736 |
|
|
|
114 |
|
|
16.76 |
|
|
|
6,736 |
|
|
|
150 |
|
|
8.96 |
|
|
|
9,351 |
|
|
|
198 |
|
|
8.49 |
|
Subordinated debt |
|
|
73,629 |
|
|
|
808 |
|
|
4.41 |
|
|
|
73,571 |
|
|
|
809 |
|
|
4.42 |
|
|
|
73,382 |
|
|
|
801 |
|
|
4.38 |
|
Total interest-bearing liabilities |
|
|
1,797,126 |
|
|
|
18,557 |
|
|
4.15 |
|
|
|
1,893,580 |
|
|
|
19,891 |
|
|
4.22 |
|
|
|
2,128,001 |
|
|
|
17,449 |
|
|
3.29 |
|
Noninterest-bearing demand deposits |
|
|
1,139,070 |
|
|
|
|
|
|
|
1,279,194 |
|
|
|
|
|
|
|
971,436 |
|
|
|
|
|
|||||||||
Other liabilities |
|
|
36,101 |
|
|
|
|
|
|
|
42,017 |
|
|
|
|
|
|
|
38,842 |
|
|
|
|
|
|||||||||
Total liabilities |
|
|
2,972,297 |
|
|
|
|
|
|
|
3,214,791 |
|
|
|
|
|
|
|
3,138,279 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock |
|
|
13,731 |
|
|
|
|
|
|
|
13,659 |
|
|
|
|
|
|
|
13,533 |
|
|
|
|
|
|||||||||
Paid-in capital |
|
|
162,518 |
|
|
|
|
|
|
|
161,532 |
|
|
|
|
|
|
|
158,601 |
|
|
|
|
|
|||||||||
|
|
|
(16,741 |
) |
|
|
|
|
|
|
(16,741 |
) |
|
|
|
|
|
|
(16,741 |
) |
|
|
|
|
|||||||||
Retained earnings |
|
|
161,709 |
|
|
|
|
|
|
|
160,933 |
|
|
|
|
|
|
|
148,600 |
|
|
|
|
|
|||||||||
Accumulated other comprehensive loss |
|
|
(32,299 |
) |
|
|
|
|
|
|
(30,559 |
) |
|
|
|
|
|
|
(32,714 |
) |
|
|
|
|
|||||||||
Total stockholders’ equity attributable to parent |
|
|
288,918 |
|
|
|
|
|
|
|
288,824 |
|
|
|
|
|
|
|
271,279 |
|
|
|
|
|
|||||||||
Noncontrolling interest |
|
|
(451 |
) |
|
|
|
|
|
|
(38 |
) |
|
|
|
|
|
|
140 |
|
|
|
|
|
|||||||||
Total stockholders’ equity |
|
|
288,467 |
|
|
|
|
|
|
|
288,786 |
|
|
|
|
|
|
|
271,419 |
|
|
|
|
|
|||||||||
Total liabilities and stockholders’ equity |
|
$ |
3,260,764 |
|
|
|
|
|
|
$ |
3,503,577 |
|
|
|
|
|
|
$ |
3,409,698 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest spread (tax-equivalent) |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
2.12 |
% |
|
|
|
|
|
2.73 |
% |
||||||||||||
Net interest income and margin (tax-equivalent)1 |
|
|
|
$ |
27,721 |
|
|
3.75 |
% |
|
|
|
$ |
30,333 |
|
|
3.83 |
% |
|
|
|
$ |
29,832 |
|
|
3.80 |
% |
||||||
Less: Tax-equivalent adjustments |
|
|
|
$ |
(151 |
) |
|
|
|
|
|
$ |
(194 |
) |
|
|
|
|
|
$ |
(250 |
) |
|
|
|||||||||
Net interest spread |
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
2.10 |
% |
|
|
|
|
|
2.70 |
% |
||||||||||||
Net interest income and margin |
|
|
|
$ |
27,570 |
|
|
3.73 |
% |
|
|
|
$ |
30,139 |
|
|
3.81 |
% |
|
|
|
$ |
29,582 |
|
|
3.77 |
% |
||||||
1In 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- 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
3 The senior term loan was paid off in |
|
|
Six Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
|
|
|
||||||||||||||||||
|
|
Average
|
|
Interest
|
|
Yield/
|
|
Average
|
|
Interest
|
|
Yield/
|
||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing balances with banks |
|
$ |
465,086 |
|
|
$ |
12,406 |
|
|
5.36 |
% |
|
$ |
365,291 |
|
|
$ |
8,695 |
|
|
4.80 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable |
|
|
249,527 |
|
|
|
3,648 |
|
|
2.94 |
|
|
|
228,587 |
|
|
|
3,077 |
|
|
2.71 |
|
Tax-exempt 1 |
|
|
104,547 |
|
|
|
1,570 |
|
|
3.02 |
|
|
|
130,609 |
|
|
|
2,456 |
|
|
3.79 |
|
Loans and loans held-for-sale: 2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial |
|
|
1,611,822 |
|
|
|
62,975 |
|
|
7.86 |
|
|
|
1,628,015 |
|
|
|
59,065 |
|
|
7.32 |
|
Tax-exempt 1 |
|
|
3,317 |
|
|
|
72 |
|
|
4.37 |
|
|
|
3,882 |
|
|
|
85 |
|
|
4.42 |
|
Real estate |
|
|
569,579 |
|
|
|
13,004 |
|
|
4.59 |
|
|
|
607,501 |
|
|
|
11,992 |
|
|
3.98 |
|
Consumer |
|
|
75,416 |
|
|
|
2,827 |
|
|
7.54 |
|
|
|
132,804 |
|
|
|
6,959 |
|
|
10.57 |
|
Total loans |
|
|
2,260,134 |
|
|
|
78,878 |
|
|
7.02 |
|
|
|
2,372,202 |
|
|
|
78,101 |
|
|
6.64 |
|
Total earning assets |
|
|
3,079,294 |
|
|
|
96,502 |
|
|
6.30 |
|
|
|
3,096,689 |
|
|
|
92,329 |
|
|
6.01 |
|
Less: Allowance for credit losses |
|
|
(22,427 |
) |
|
|
|
|
|
|
(32,653 |
) |
|
|
|
|
||||||
Cash and due from banks |
|
|
4,967 |
|
|
|
|
|
|
|
3,015 |
|
|
|
|
|
||||||
Other assets |
|
|
320,338 |
|
|
|
|
|
|
|
314,279 |
|
|
|
|
|
||||||
Total assets |
|
$ |
3,382,172 |
|
|
|
|
|
|
$ |
3,381,330 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW |
|
$ |
510,558 |
|
|
$ |
9,068 |
|
|
3.57 |
% |
|
$ |
739,273 |
|
|
$ |
9,478 |
|
|
2.59 |
% |
Money market checking |
|
|
404,484 |
|
|
|
7,096 |
|
|
3.53 |
|
|
|
413,718 |
|
|
|
3,367 |
|
|
1.64 |
|
Savings |
|
|
137,918 |
|
|
|
2,585 |
|
|
3.77 |
|
|
|
82,735 |
|
|
|
991 |
|
|
2.42 |
|
IRAs |
|
|
7,856 |
|
|
|
155 |
|
|
3.97 |
|
|
|
6,276 |
|
|
|
72 |
|
|
2.31 |
|
CDs |
|
|
702,974 |
|
|
|
17,657 |
|
|
5.05 |
|
|
|
525,213 |
|
|
|
12,695 |
|
|
4.87 |
|
Repurchase agreements and federal funds sold |
|
|
3,205 |
|
|
|
5 |
|
|
0.31 |
|
|
|
6,514 |
|
|
|
— |
|
|
— |
|
FHLB and other borrowings |
|
|
22 |
|
|
|
1 |
|
|
9.14 |
|
|
|
35,347 |
|
|
|
888 |
|
|
5.07 |
|
Senior term loan 3 |
|
|
4,736 |
|
|
|
264 |
|
|
11.21 |
|
|
|
9,557 |
|
|
|
392 |
|
|
8.27 |
|
Subordinated debt |
|
|
73,600 |
|
|
|
1,617 |
|
|
4.42 |
|
|
|
73,350 |
|
|
|
1,600 |
|
|
4.40 |
|
Total interest-bearing liabilities |
|
|
1,845,353 |
|
|
|
38,448 |
|
|
4.19 |
|
|
|
1,891,983 |
|
|
|
29,483 |
|
|
3.14 |
|
Noninterest-bearing demand deposits |
|
|
1,209,132 |
|
|
|
|
|
|
|
1,174,965 |
|
|
|
|
|
||||||
Other liabilities |
|
|
39,059 |
|
|
|
|
|
|
|
37,969 |
|
|
|
|
|
||||||
Total liabilities |
|
|
3,093,544 |
|
|
|
|
|
|
|
3,104,917 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock |
|
|
13,695 |
|
|
|
|
|
|
|
13,502 |
|
|
|
|
|
||||||
Paid-in capital |
|
|
162,025 |
|
|
|
|
|
|
|
156,009 |
|
|
|
|
|
||||||
|
|
|
(16,741 |
) |
|
|
|
|
|
|
(16,741 |
) |
|
|
|
|
||||||
Retained earnings |
|
|
161,322 |
|
|
|
|
|
|
|
157,464 |
|
|
|
|
|
||||||
Accumulated other comprehensive income loss |
|
|
(31,429 |
) |
|
|
|
|
|
|
(34,022 |
) |
|
|
|
|
||||||
Total stockholders’ equity attributable to parent |
|
|
288,872 |
|
|
|
|
|
|
|
276,212 |
|
|
|
|
|
||||||
Noncontrolling interest |
|
|
(244 |
) |
|
|
|
|
|
|
201 |
|
|
|
|
|
||||||
Total stockholders’ equity |
|
|
288,628 |
|
|
|
|
|
|
|
276,413 |
|
|
|
|
|
||||||
Total liabilities and stockholders’ equity |
|
$ |
3,382,172 |
|
|
|
|
|
|
$ |
3,381,330 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest spread (tax-equivalent) |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
2.87 |
% |
||||||||
Net interest income and margin (tax-equivalent)1 |
|
|
|
$ |
58,054 |
|
|
3.79 |
% |
|
|
|
$ |
62,846 |
|
|
4.09 |
% |
||||
Less: Tax-equivalent adjustments |
|
|
|
$ |
(345 |
) |
|
|
|
|
|
$ |
(535 |
) |
|
|
||||||
Net interest spread |
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
2.84 |
% |
||||||||
Net interest income and margin |
|
|
|
$ |
57,709 |
|
|
3.77 |
% |
|
|
|
$ |
62,311 |
|
|
4.06 |
% |
||||
1 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- 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
3 The senior term loan was paid off in |
Selected Financial Data (Unaudited) (Dollars in thousands, except per share data) |
||||||||||||||||||||
|
|
Quarterly |
|
Year-to-Date |
||||||||||||||||
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Second Quarter |
|
First Quarter |
|
Second Quarter |
|
|
||||||||||||
Earnings and Per Share Data: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
|
$ |
4,089 |
|
|
$ |
4,482 |
|
|
$ |
8,112 |
|
|
$ |
8,571 |
|
|
$ |
19,454 |
|
Earnings per share from continuing operations - basic |
|
$ |
0.32 |
|
|
$ |
0.35 |
|
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
0.84 |
|
Earnings per share from discontinued operations - basic |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.69 |
|
Earnings per share - basic |
|
$ |
0.32 |
|
|
$ |
0.35 |
|
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
1.54 |
|
Earnings per share from continuing operations - diluted |
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.63 |
|
|
$ |
0.66 |
|
|
$ |
0.82 |
|
Earnings per share from discontinued operations - diluted |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.68 |
|
Earnings per share - diluted |
|
$ |
0.31 |
|
|
$ |
0.34 |
|
|
$ |
0.63 |
|
|
$ |
0.66 |
|
|
$ |
1.50 |
|
Cash dividends paid per common share |
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
0.34 |
|
|
$ |
0.34 |
|
Book value per common share |
|
$ |
22.94 |
|
|
$ |
22.73 |
|
|
$ |
21.57 |
|
|
$ |
22.94 |
|
|
$ |
21.57 |
|
Tangible book value per common share 1 |
|
$ |
22.70 |
|
|
$ |
22.48 |
|
|
$ |
21.31 |
|
|
$ |
22.70 |
|
|
$ |
21.31 |
|
Weighted-average shares outstanding - basic |
|
|
12,883,426 |
|
|
|
12,810,956 |
|
|
|
12,689,669 |
|
|
|
12,847,191 |
|
|
|
12,656,698 |
|
Weighted-average shares outstanding - diluted |
|
|
13,045,660 |
|
|
|
13,119,292 |
|
|
|
12,915,294 |
|
|
|
13,058,791 |
|
|
|
12,959,725 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets 2 |
|
|
0.5 |
% |
|
|
0.5 |
% |
|
|
1.0 |
% |
|
|
0.5 |
% |
|
|
1.2 |
% |
Return on average equity 2 |
|
|
5.7 |
% |
|
|
6.2 |
% |
|
|
12.0 |
% |
|
|
5.9 |
% |
|
|
14.1 |
% |
Net interest margin 3 4 |
|
|
3.75 |
% |
|
|
3.83 |
% |
|
|
3.80 |
% |
|
|
3.79 |
% |
|
|
4.09 |
% |
Efficiency ratio 5 |
|
|
83.3 |
% |
|
|
79.5 |
% |
|
|
84.1 |
% |
|
|
81.3 |
% |
|
|
70.9 |
% |
Overhead ratio 2 6 |
|
|
3.5 |
% |
|
|
3.4 |
% |
|
|
3.6 |
% |
|
|
3.5 |
% |
|
|
3.5 |
% |
Equity to assets |
|
|
9.0 |
% |
|
|
8.2 |
% |
|
|
8.2 |
% |
|
|
9.0 |
% |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality Data and Ratios: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Charge-offs |
|
$ |
1,538 |
|
|
$ |
2,150 |
|
|
$ |
3,700 |
|
|
$ |
3,688 |
|
|
$ |
8,547 |
|
Recoveries |
|
$ |
688 |
|
|
$ |
835 |
|
|
$ |
2,468 |
|
|
$ |
1,523 |
|
|
$ |
5,637 |
|
Net loan charge-offs to total loans 2 7 |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
Allowance for credit losses |
|
$ |
22,084 |
|
|
$ |
22,084 |
|
|
$ |
30,294 |
|
|
$ |
22,084 |
|
|
$ |
30,294 |
|
Allowance for credit losses to total loans 8 |
|
|
1.00 |
% |
|
|
1.01 |
% |
|
|
1.31 |
% |
|
|
1.00 |
% |
|
|
1.31 |
% |
Nonperforming loans |
|
$ |
23,099 |
|
|
$ |
7,546 |
|
|
$ |
13,646 |
|
|
$ |
23,099 |
|
|
$ |
13,646 |
|
Nonperforming loans to total loans |
|
|
1.0 |
% |
|
|
0.3 |
% |
|
|
0.6 |
% |
|
|
1.0 |
% |
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Company Equity Method Investees Production Data9: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage pipeline |
|
$ |
927,875 |
|
|
$ |
790,771 |
|
|
$ |
748,756 |
|
|
$ |
927,875 |
|
|
$ |
748,756 |
|
Loans originated |
|
$ |
1,383,405 |
|
|
$ |
1,050,089 |
|
|
$ |
1,167,596 |
|
|
$ |
2,433,494 |
|
|
$ |
2,167,711 |
|
Loans closed |
|
$ |
828,849 |
|
|
$ |
653,306 |
|
|
$ |
820,665 |
|
|
$ |
1,482,155 |
|
|
$ |
1,495,882 |
|
Loans sold |
|
$ |
639,035 |
|
|
$ |
916,115 |
|
|
$ |
786,469 |
|
|
$ |
1,555,150 |
|
|
$ |
1,221,723 |
|
1 Common equity less total goodwill and intangibles per common share, a non- 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, a non-
5 Noninterest expense as a percentage of net interest income and noninterest income, a non-
6 Noninterest expense as a percentage of average assets, a non- 7 Charge-offs, less recoveries. 8 Excludes loans held-for-sale.
9 Information is related to |
Non-
The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis: |
||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin - |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
$ |
27,570 |
|
|
$ |
30,139 |
|
|
$ |
29,582 |
|
|
$ |
57,709 |
|
|
$ |
62,311 |
|
Average interest-earning assets |
|
$ |
2,973,188 |
|
|
$ |
3,185,401 |
|
|
$ |
3,149,924 |
|
|
|
3,079,294 |
|
|
|
3,096,689 |
|
Net interest margin |
|
|
3.73 |
% |
|
|
3.81 |
% |
|
|
3.77 |
% |
|
|
3.77 |
% |
|
|
4.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin - non- |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
$ |
27,570 |
|
|
$ |
30,139 |
|
|
$ |
29,582 |
|
|
$ |
57,709 |
|
|
$ |
62,311 |
|
Impact of fully tax-equivalent adjustment |
|
|
151 |
|
|
|
194 |
|
|
|
250 |
|
|
|
345 |
|
|
|
535 |
|
Net interest income on a fully tax-equivalent basis |
|
$ |
27,721 |
|
|
$ |
30,333 |
|
|
$ |
29,832 |
|
|
|
58,054 |
|
|
|
62,846 |
|
Average interest-earning assets |
|
$ |
2,973,188 |
|
|
$ |
3,185,401 |
|
|
$ |
3,149,924 |
|
|
$ |
3,079,294 |
|
|
$ |
3,096,689 |
|
Net interest margin on a fully tax-equivalent basis |
|
|
3.75 |
% |
|
|
3.83 |
% |
|
|
3.80 |
% |
|
|
3.79 |
% |
|
|
4.09 |
% |
Non- (Unaudited) (Dollars in thousands, except per share data) |
||||||||||||
|
|
|
|
|
|
|
||||||
Tangible Book Value per Common Share |
|
|
|
|
|
|
||||||
|
|
$ |
2,838 |
|
|
$ |
2,838 |
|
|
$ |
2,838 |
|
Intangibles |
|
|
307 |
|
|
|
330 |
|
|
|
397 |
|
Total intangibles |
|
$ |
3,145 |
|
|
|
3,168 |
|
|
|
3,235 |
|
|
|
|
|
|
|
|
||||||
Total equity attributable to parent |
|
$ |
296,625 |
|
|
|
291,850 |
|
|
|
274,349 |
|
Less: Total intangibles |
|
|
(3,145 |
) |
|
|
(3,168 |
) |
|
|
(3,235 |
) |
Tangible common equity |
|
$ |
293,480 |
|
|
$ |
288,682 |
|
|
$ |
271,114 |
|
|
|
|
|
|
|
|
||||||
Tangible common equity |
|
$ |
293,480 |
|
|
$ |
288,682 |
|
|
$ |
271,114 |
|
Common shares outstanding (000s) |
|
|
12,928 |
|
|
|
12,841 |
|
|
|
12,720 |
|
Tangible book value per common share |
|
$ |
22.70 |
|
|
$ |
22.48 |
|
|
$ |
21.31 |
|
|
|
|
|
|
|
|
||||||
Tangible Common Equity Ratio |
|
|
|
|
|
|
||||||
Total assets |
|
$ |
3,288,004 |
|
|
$ |
3,547,390 |
|
|
$ |
3,351,847 |
|
Less: Total intangibles |
|
|
(3,145 |
) |
|
|
(3,168 |
) |
|
|
(3,235 |
) |
Tangible assets |
|
$ |
3,284,859 |
|
|
$ |
3,544,222 |
|
|
$ |
3,348,612 |
|
|
|
|
|
|
|
|
||||||
Tangible assets |
|
$ |
3,284,859 |
|
|
$ |
3,544,222 |
|
|
$ |
3,348,612 |
|
Tangible common equity |
|
$ |
293,480 |
|
|
$ |
288,682 |
|
|
$ |
271,114 |
|
Tangible common equity ratio |
|
|
8.9 |
% |
|
|
8.1 |
% |
|
|
8.1 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729597676/en/
Questions or comments concerning this earnings release should be directed to:
(304) 598-3500
drobinson@mvbbanking.com
(844) 682-2265
abaker@mvbbanking.com
Source: