8-K
MVB FINANCIAL CORP (MVBF)
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): | February 14, 2024 | ||
|---|---|---|---|
| MVB Financial Corp. | |||
| --- | |||
| (Exact name of registrant as specified in its charter) | |||
| West Virginia | 001-38314 | 20-0034461 | |
| --- | --- | --- | |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
| 301 Virginia Avenue, Fairmont, WV | 26554-2777 | ||
| --- | --- | ||
| (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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Securities registered pursuant to Section 12(b) of the Act: | ||
|---|---|---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common stock, $1.00 par value | MVBF | The Nasdaq Stock Market LLC |
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 February 14, 2024, MVB Financial Corp. (NASDAQ: MVBF) issued a press release announcing its financial results for the quarter ended December 31, 2023. 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.
99.1 Press release of MVB Financial Corp. dated February 14, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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/ Donald T. Robinson |
| Donald T. Robinson<br>President and Chief Financial Officer |
Date: February 14, 2024
Document
Exhibit 99.1
N E W S R E L E A S E
MVB Financial Corp. Announces Fourth Quarter and Full Year 2023 Results
(FAIRMONT, WV) February 14, 2024 – 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, 2023, with reported net income of $7.9 million, or $0.62 basic and $0.61 diluted earnings per share for the three months ended December 31, 2023.
Fourth Quarter 2023 Highlights As Compared to Third Quarter 2023
Net interest income increased 4.2%, or $1.2 million.
Net interest margin improved by 17 bps to 4.04%.
Earnings per share up 106.7% to $0.62.
Loan growth of 2.1%; Balance sheet loan to deposit ratio of 79.9% from 74.7%.
Noninterest expense declined by 7.9%, or $2.4 million.
Book value per share and tangible book value per share, a non-GAAP financial measure, increased 6.3% and 6.4% to $22.68 and $22.43, respectively.
Asset quality measures improved; Capital strength further enhanced.
From Larry F. Mazza, Chief Executive Officer, MVB Financial:
“MVB closed a challenging year for the banking industry with strong fourth quarter results. Loans and investment securities continued to reprice higher, excess liquidity was redeployed as the pace of loan growth picked up and funding costs stabilized, driving significant improvement in net interest margin and net interest income. At the same time, expenses were well-controlled, Fintech-related fee income growth accelerated and measures of safety, soundness, foundational strength and shareholder value were improved and further enhanced. Team MVB’s resilience and adaptability enabled us to navigate the disruptive industry events last year, and now leave us well-positioned to drive further improvement in earnings and profitability as market conditions begin to turn favorably.”
FOURTH QUARTER 2023 HIGHLIGHTS
•Loan growth and net interest margin expansion powered net interest income growth.
•Net interest income on a fully tax-equivalent basis, a non-GAAP financial measure, increased 4.0%, or $1.2 million, to $31.3 million relative to the prior quarter, primarily reflecting net interest margin expansion and higher average loan balances, partially offset by lower interest-bearing balances with banks.
•Net interest margin on a fully tax-equivalent basis, a non-GAAP financial measure, was 4.06%, up 16 basis points from the prior quarter, primarily reflecting higher earning asset yields, a favorable shift in the mix of earning assets and deposit funding and relatively stable funding costs. Total cost of funds was 2.44%, compared to 2.43% for the prior quarter.
•Average earning asset balances decreased 0.3% during the fourth quarter of 2023, primarily reflecting lower interest-bearing balances with banks, primarily offset by higher average loan and investment securities balances. Average total loan balances increased 1.1%, largely driven by higher commercial loans.
•Deposit balances declined as funding mix optimization continued.
•Total deposits declined 4.5%, or $137.4 million, to $2.9 billion, compared to the prior quarter-end, primarily reflecting lower certificate of deposit (“CD”) balances, which includes a 10.5%, or $45.8 million, decline in brokered deposits, as the Company looks to reduce higher-cost funding that had been added in response to 2023 industry events.
•Total off-balance sheet deposits remained consistent at $1.09 billion as compared to $1.11 billion at the prior quarter-end. Off-balance sheet deposit networks are utilized to generate fee income, enhance capital efficiency and manage liquidity and concentration risk.
•Noninterest bearing (“NIB”) deposit balances increased 9.4%, or $103.4 million, to $1.20 billion, as compared to the prior quarter-end, primarily reflecting gaming and seasonal considerations. NIB deposits represented 41.3% of total deposits, as compared to 36.0% of total deposits at the prior quarter-end.
•Balance sheet loan to deposit ratio was 79.9% as of December 31, 2023, compared to 74.7% as of September 30, 2023.
•Asset quality measures improved; Capital strength and shareholder value further enhanced.
•Nonperforming loans declined $2.3 million, or 22.0%, to $8.3 million, or 0.4% of total loans, from $10.6 million, or 0.5% of total loans, at the prior quarter-end. Criticized loans as a percentage of total loans were 5.3%, as compared to 6.1% at the prior quarter-end. Net charge-offs were $0.5 million, or 0.1% of total loans on an annualized basis, for the fourth quarter of 2023, compared to $5.9 million, or 1.0%, for the prior quarter.
•The release of allowance for credit losses totaled $2.1 million, primarily reflecting the general improvement in credit indicators and the continued changes in loan portfolio composition. The allowance for credit losses was 1.0% of total loans, as compared to 1.1% as of 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 10.5%, 14.4%, and 15.1%, respectively, compared to 10.4%, 14.0%, and 14.8%, respectively, at the prior quarter-end.
•The tangible common equity to tangible assets ratio was 8.6%, compared to 7.8% at the prior quarter-end. Tangible book value per share, a non-U.S. GAAP measure, increased 6.4% to $22.43, relative to the prior quarter-end.
•Expenses declined on lower personnel costs; Fee income down on mortgage loss; Fintech-related fee income increased.
•Noninterest expense declined 7.9% to $28.3 million relative to the prior quarter, primarily reflecting lower salaries and employee benefits costs and other operating expense. Professional fees remained elevated due to actions taken to enhance regulatory and compliance infrastructure.
•Total noninterest income declined 23.4% to $4.4 million relative to the prior quarter, primarily reflecting increased equity method investment losses, partially offset by higher payment card and service charge income, which primarily relates to the Company’s Fintech-related fee income initiatives.
INCOME STATEMENT
Net interest income on a tax-equivalent basis totaled $31.3 million for the fourth quarter of 2023, an increase of $1.2 million, or 4.0%, from the third quarter of 2023 and a decline of $2.4 million, or 7.2%, from the fourth quarter of 2022. The increase in net interest income compared to the third quarter of 2023 reflected a higher net interest margin, partially offset by a slight decline in total average earning asset balances. The decline compared to the fourth quarter of 2022 reflected higher funding costs, partially offset by higher average earning asset balances.
Interest income increased $1.4 million, or 2.8%, from the third quarter of 2023 and increased $9.0 million, or 22.1%, compared to the fourth quarter of 2022. The tax-equivalent yield on loans was 7.2% for the fourth quarter of 2023, compared to 7.0% for the third quarter of 2023 and 6.1% for the fourth quarter of 2022. Higher loan yields generally reflected the cumulative impact of loans booked at higher yields than the prevailing portfolio yield in prior periods and the repricing of variable rate loans.
Interest expense increased $0.1 million, or 0.7%, compared to the third quarter of 2023 and $11.3 million, or 156.3%, compared to the fourth quarter of 2022. The cost of funds was 2.44% for the fourth quarter of 2023, consistent with the third quarter of 2023 and up 144 basis points compared to the fourth quarter of 2022. The increase in cost of funds compared to the prior year reflected higher funding costs across the board and a shift in the mix of deposit funding toward higher cost deposit products.
On a fully tax-equivalent basis, net interest margin for the fourth quarter of 2023 was 4.06%, an increase of 16 basis points from the third quarter of 2023 and a decrease of 51 basis points from the fourth quarter of 2022. 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 increase in net interest margin from the third quarter of 2023 primarily reflected higher loan and investment portfolio yields, a favorable shift in the mix of earning assets and deposit funding and stable funding costs. Contraction in the net interest margin from the fourth quarter of 2022 primarily reflected higher funding costs and an unfavorable shift in the mix of deposit funding, partially offset by higher earning asset yields.
Noninterest income totaled $4.4 million for the fourth quarter of 2023, a decrease of $1.4 million, or 23.4%, from the third quarter of 2023 and an increase of $1.0 million, or 29.2%, from the fourth quarter of 2022. The decrease compared to the third quarter of 2023 was primarily driven by an increase of $1.7 million in equity method investment losses from our mortgage companies and a $0.7 million loss on derivatives during the the fourth quarter of 2023 without a comparable loss in the prior quarter, partially offset by a $1.0 million increase in payment card and service charge income. The increase in noninterest income from the fourth quarter of 2022 was primarily driven by increases of $2.4 million in gain on sale of loans, $2.1 million in payment card and service charge income, $1.5 million in holding gains on equity securities and $0.7 million in other operating income. The increases were partially offset by a $3.6 million gain on sale of assets in the fourth quarter of 2022 without a comparable gain in the current quarter, an increase of $1.1 million in equity method investment losses from our mortgage companies and a $0.7 million loss on derivatives in the fourth quarter of 2023 without a comparable loss in the prior year.
Noninterest expense totaled $28.3 million for the fourth quarter of 2023, a decrease of $2.4 million, or 7.9%, from the third quarter of 2023 and an increase of $1.6 million, or 5.8%, from the fourth quarter of 2022. The decrease from the third quarter of 2023 was driven by declines of $1.2 million in salaries and employee benefits, $0.8 million in other operating expense and $0.4 million in insurance, tax and assessment expense. The increase from the fourth quarter of 2022 primarily reflected higher professional fees of $1.8 million and higher salaries and employee benefits of $0.5 million, partially offset by a decline in other operating expense of $0.7 million.
BALANCE SHEET
Loans totaled $2.32 billion at December 31, 2023, an increase of $47.2 million, or 2.1%, and a decrease of $55.1 million, or 2.3%, as compared to September 30, 2023 and December 31, 2022, respectively. Loan growth compared to September 30, 2023 was driven primarily by higher commercial loan balances. The decrease in loan balances compared to December 31, 2022 primarily reflected deliberate efforts to improve balance sheet liquidity, lower market demand and the sale of $44.4 million of subprime automobile loans during 2023. Loans held-for-sale, which represent MVB Bank’s government guaranteed lending, were $0.6 million as of December 31, 2023, compared to $7.6 million at September 30, 2023 and $23.1 million at December 31, 2022. The decline in loans held-for-sale from the prior periods was driven by loan sales and amortization of the portfolio, as government guaranteed lending is no longer a growth vehicle.
Deposits totaled $2.90 billion as of December 31, 2023, a decrease of $137.4 million, or 4.5%, from September 30, 2023 and an increase of $331.0 million, or 12.9%, from December 31, 2022. NIB deposits totaled $1.20 billion as of December 31, 2023, an increase of $103.4 million, or 9.4%, and a decrease of $34.3 million, or 2.8%, from September 30, 2023 and December 31, 2022, respectively. The decrease in total deposits compared to September 30, 2023 primarily reflected a decline in CDs and brokered deposits. The increase in total deposits relative to December 31, 2022 reflected higher CDs and brokered deposits, partially offset by a decrease in NIB deposits driven by the highly-competitive deposit environment, higher interest rates and the utilization of off-balance sheet deposit networks to generate fee income, enhance capital efficiency and manage liquidity and concentration risk.
CAPITAL
The Community Bank Leverage Ratio was 10.5% as of December 31, 2023, compared to 10.4% as of September 30, 2023 and 9.8% as of December 31, 2022. MVB’s Tier 1 Risk-Based Capital Ratio was 14.4% as of December 31, 2023, compared to 14.0% as of September 30, 2023 and 12.4% as of December 31, 2022. The Bank’s Total Risk-Based Capital Ratio was 15.1% as of December 31, 2023, compared to 14.8% as of
September 30, 2023 and 13.4% as of December 31, 2022.
The Company issued a quarterly cash dividend of $0.17 per share for the quarter ended December 31, 2023, consistent with the quarters ended September 30, 2023 and December 31, 2022.
ASSET QUALITY
Nonperforming loans totaled $8.3 million, or 0.4% of total loans, for the fourth quarter of 2023, as compared to $10.6 million, or 0.5% of total loans for the third quarter of 2023 and $11.2 million, or 0.5% of total loans for the fourth quarter of 2022. Criticized loans were $122.4 million, or 5.3% of total loans, as compared to $137.5 million, or 6.1% of total loans, for the third quarter of 2023 and $71.2 million, or 3.0% of total loans, for the fourth quarter of 2022.
Net charge-offs on an annualized basis were $0.5 million, or 0.1% of total loans, for the fourth quarter of 2023, compared to $5.9 million, or 1.0% of total loans, for the third quarter of 2023 and $5.4 million, or 0.9% of total loans for the fourth quarter of 2022.
The release of allowance for credit losses totaled $2.1 million for the quarter ended December 31, 2023, compared to a release of $0.2 million for the quarter ended September 30, 2023 and a provision of $2.7 million for the quarter ended December 31, 2022. The release of allowance for credit losses for the quarter ended December 31, 2023 was attributed to an improvement in asset quality and the reduction in criticized loans. The allowance for credit losses was 1.0% of total loans at December 31, 2023, as compared to 1.1% as of September 30, 2023 and 1.0% as of December 31, 2022.
About MVB Financial Corp.
MVB Financial, the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® (“Nasdaq”) under the ticker “MVBF.”
MVB is a financial holding company headquartered in Fairmont, West Virginia. Through its subsidiary, MVB Bank, and MVB Bank’s subsidiaries, MVB Financial 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 Financial 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 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; impacts related to or resulting from recent turmoil in the banking industry; inability to successfully execute business plans, including strategies related to investments in Fintech companies; competition; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; 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, 2023, 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
Non-U.S. GAAP Financial Measures
This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management uses these non-U.S. GAAP measures in its analysis of the Company’s performance. These measures should not be considered a substitute for U.S. GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with U.S. GAAP. Management believes the presentation of non-U.S. GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company’s financial condition and results. Non-U.S. GAAP measures are not formally defined under U.S. GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to U.S. GAAP financial measures, our management believes these non-U.S. GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-U.S. GAAP measures. See the tables below for a reconciliation of these non-U.S. GAAP measures to the most directly comparable U.S. GAAP financial measures.
MVB Financial Corp.
Financial Highlights
Consolidated Statements of Income
(Unaudited) (Dollars in thousands, except per share data)
| Quarterly | Year-to-Date | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | ||||||||
| Interest income | $ | 49,699 | $ | 48,325 | $ | 40,702 | $ | 189,818 | $ | 125,957 |
| Interest expense | 18,592 | 18,460 | 7,253 | 66,535 | 14,154 | |||||
| Net interest income | 31,107 | 29,865 | 33,449 | 123,283 | 111,803 | |||||
| Provision (release of allowance) for credit losses | (2,103) | (159) | 2,694 | (1,921) | 14,194 | |||||
| Net interest income after provision (release of allowance) for credit losses | 33,210 | 30,024 | 30,755 | 125,204 | 97,609 | |||||
| Total noninterest income | 4,438 | 5,791 | 3,435 | 19,715 | 27,565 | |||||
| Noninterest expense: | ||||||||||
| Salaries and employee benefits | 14,863 | 16,016 | 14,317 | 63,371 | 62,534 | |||||
| Other expense | 13,438 | 14,709 | 12,424 | 54,254 | 47,612 | |||||
| Total noninterest expenses | 28,301 | 30,725 | 26,741 | 117,625 | 110,146 | |||||
| Income before income taxes | 9,347 | 5,090 | 7,449 | 27,294 | 15,028 | |||||
| Income taxes | 1,431 | 1,218 | 1,731 | 5,070 | 3,294 | |||||
| Net income from continuing operations before noncontrolling interest | 7,916 | 3,872 | 5,718 | 22,224 | 11,734 | |||||
| Income from discontinued operations before income taxes | — | — | 888 | 11,831 | 3,487 | |||||
| Income taxes - discontinued operations | — | — | 236 | 3,049 | 834 | |||||
| Net income from discontinued operations | — | — | 652 | 8,782 | 2,653 | |||||
| Net (income) loss attributable to noncontrolling interest | (5) | (5) | 139 | 226 | 660 | |||||
| Net income available to common shareholders | $ | 7,911 | $ | 3,867 | $ | 6,509 | $ | 31,232 | $ | 15,047 |
| Earnings per share from continuing operations - basic | $ | 0.62 | $ | 0.30 | $ | 0.47 | $ | 1.77 | $ | 1.01 |
| Earnings per share from discontinued operations - basic | $ | — | $ | — | $ | 0.05 | $ | 0.69 | $ | 0.22 |
| Earnings per share - basic | $ | 0.62 | $ | 0.30 | $ | 0.52 | $ | 2.46 | $ | 1.23 |
| Earnings per share from continuing operations - diluted | $ | 0.61 | $ | 0.29 | $ | 0.45 | $ | 1.72 | $ | 0.96 |
| Earnings per share from discontinued operations - diluted | $ | — | $ | — | $ | 0.05 | $ | 0.68 | $ | 0.21 |
| Earnings per share - diluted | $ | 0.61 | $ | 0.29 | $ | 0.50 | $ | 2.40 | $ | 1.17 |
Noninterest Income
(Unaudited) (Dollars in thousands)
| Quarterly | Year-to-Date | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | ||||||||
| Card acquiring income | $ | 1,348 | $ | 845 | $ | 497 | $ | 3,603 | $ | 2,790 |
| Service charges on deposits | 174 | 490 | 684 | 2,850 | 3,418 | |||||
| Interchange income | 2,289 | 1,517 | 497 | 7,323 | 5,440 | |||||
| Total payment card and service charge income | 3,811 | 2,852 | 1,678 | 13,776 | 11,648 | |||||
| Equity method investments loss | (2,429) | (750) | (1,379) | (2,499) | (713) | |||||
| Compliance and consulting income | 986 | 1,314 | 1,217 | 4,312 | 4,598 | |||||
| Gain (loss) on sale of loans | 271 | 330 | (2,131) | (744) | 1,655 | |||||
| Investment portfolio gains (losses) | 75 | 244 | (1,397) | (1,659) | 925 | |||||
| Loss on acquisition and divestiture activity | — | — | — | (986) | — | |||||
| Other noninterest income | 1,724 | 1,801 | 5,447 | 7,515 | 9,452 | |||||
| Total noninterest income | $ | 4,438 | $ | 5,791 | $ | 3,435 | $ | 19,715 | $ | 27,565 |
Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)
| December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | $ | 398,229 | $ | 587,100 | $ | 40,280 |
| Securities available-for-sale, at fair value | 345,275 | 311,537 | 379,814 | |||
| Equity securities | 41,086 | 40,835 | 38,744 | |||
| Loans held-for-sale | 629 | 7,603 | 23,126 | |||
| Loans receivable | 2,317,594 | 2,270,433 | 2,372,645 | |||
| Less: Allowance for credit losses | (22,124) | (24,276) | (23,837) | |||
| Loans receivable, net | 2,295,470 | 2,246,157 | 2,348,808 | |||
| Premises and equipment, net | 20,928 | 21,468 | 23,630 | |||
| Assets from discontinued operations | — | — | 4,315 | |||
| Goodwill | 2,838 | 2,838 | 2,838 | |||
| Other assets | 209,427 | 220,045 | 207,295 | |||
| Total assets | $ | 3,313,882 | $ | 3,437,583 | $ | 3,068,850 |
| Noninterest-bearing deposits | $ | 1,197,272 | $ | 1,093,903 | $ | 1,231,544 |
| Interest-bearing deposits | 1,704,204 | 1,944,986 | 1,338,938 | |||
| FHLB and other borrowings | — | — | 102,333 | |||
| Senior term loan | 6,786 | 8,473 | 9,765 | |||
| Subordinated debt | 73,540 | 73,478 | 73,286 | |||
| Liabilities from discontinued operations | — | — | 5,444 | |||
| Other liabilities | 42,738 | 45,374 | 46,149 | |||
| Stockholders' equity | 289,342 | 271,369 | 261,391 | |||
| Total liabilities and stockholders' equity | $ | 3,313,882 | $ | 3,437,583 | $ | 3,068,850 |
Reportable Segments
(Unaudited)
| Twelve Months Ended December 31, 2023 | CoRe Banking | Mortgage Banking | Financial Holding Company | Other | Intercompany Eliminations | Consolidated | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | ||||||||||||
| Interest income | $ | 189,498 | $ | 416 | $ | 41 | $ | — | $ | (137) | $ | 189,818 |
| Interest expense | 62,507 | — | 3,985 | 180 | (137) | 66,535 | ||||||
| Net interest income (expense) | 126,991 | 416 | (3,944) | (180) | — | 123,283 | ||||||
| Release of allowance for credit losses | (1,921) | — | — | — | — | (1,921) | ||||||
| Net interest income (expense) after release of allowance for credit losses | 128,912 | 416 | (3,944) | (180) | — | 125,204 | ||||||
| Noninterest income | 17,286 | (2,486) | 10,453 | 9,138 | (14,676) | 19,715 | ||||||
| Noninterest expenses: | ||||||||||||
| Salaries and employee benefits | 37,265 | 7 | 17,041 | 9,058 | — | 63,371 | ||||||
| Other expense | 53,221 | 65 | 8,233 | 7,411 | (14,676) | 54,254 | ||||||
| Total noninterest expenses | 90,486 | 72 | 25,274 | 16,469 | (14,676) | 117,625 | ||||||
| Income (loss) before income taxes | 55,712 | (2,142) | (18,765) | (7,511) | — | 27,294 | ||||||
| Income taxes | 12,342 | (557) | (4,923) | (1,792) | — | 5,070 | ||||||
| Net income (loss) from continuing operations | 43,370 | (1,585) | (13,842) | (5,719) | — | 22,224 | ||||||
| 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) | 43,370 | (1,585) | (13,842) | 3,063 | — | 31,006 | ||||||
| Net loss attributable to noncontrolling interest | — | — | — | 226 | — | 226 | ||||||
| Net income (loss) available to common shareholders | $ | 43,370 | $ | (1,585) | $ | (13,842) | $ | 3,289 | $ | — | $ | 31,232 |
| Twelve Months Ended December 31, 2022 | CoRe Banking | Mortgage Banking | Financial Holding Company | Other | Intercompany Eliminations | Consolidated | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands) | ||||||||||||
| Interest income | $ | 125,426 | $ | 429 | $ | 146 | $ | — | $ | (44) | $ | 125,957 |
| Interest expense | 10,920 | — | 3,234 | 44 | (44) | 14,154 | ||||||
| Net interest income (expense) | 114,506 | 429 | (3,088) | (44) | — | 111,803 | ||||||
| Provision for credit losses | 14,194 | — | — | — | — | 14,194 | ||||||
| Net interest income (expense) after provision for credit losses | 100,312 | 429 | (3,088) | (44) | — | 97,609 | ||||||
| Noninterest income | 22,673 | 37 | 10,576 | 6,120 | (11,841) | 27,565 | ||||||
| Noninterest expenses: | ||||||||||||
| Salaries and employee benefits | 36,960 | 8 | 16,582 | 8,984 | — | 62,534 | ||||||
| Other expenses | 44,873 | 142 | 8,049 | 6,389 | (11,841) | 47,612 | ||||||
| Total noninterest expenses | 81,833 | 150 | 24,631 | 15,373 | (11,841) | 110,146 | ||||||
| Income (loss) before income taxes | 41,152 | 316 | (17,143) | (9,297) | — | 15,028 | ||||||
| Income taxes | 8,882 | 77 | (3,472) | (2,193) | — | 3,294 | ||||||
| Net income (loss) from continuing operations | 32,270 | 239 | (13,671) | (7,104) | — | 11,734 | ||||||
| Income from discontinued operations before income taxes | — | — | — | 3,487 | — | 3,487 | ||||||
| Income tax expense - discontinued operations | — | — | — | 834 | — | 834 | ||||||
| Net income from discontinued operations | — | — | — | 2,653 | — | 2,653 | ||||||
| Net income (loss) | 32,270 | 239 | (13,671) | (4,451) | — | 14,387 | ||||||
| Net loss attributable to noncontrolling interest | — | — | — | 660 | — | 660 | ||||||
| Net income (loss) available to common shareholders | $ | 32,270 | $ | 239 | $ | (13,671) | $ | (3,791) | $ | — | $ | 15,047 |
Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||
| Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Cost | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Cost | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Cost | ||||||||||
| Assets | ||||||||||||||||||
| Interest-bearing balances with banks | $ | 442,521 | $ | 5,944 | 5.33 | % | $ | 483,158 | $ | 6,404 | 5.26 | % | $ | 113,500 | $ | 982 | 3.43 | % |
| Investment securities: | ||||||||||||||||||
| Taxable | 222,303 | 1,444 | 2.58 | 206,340 | 1,056 | 2.03 | 233,839 | 1,114 | 1.89 | |||||||||
| Tax-exempt 1 | 98,464 | 876 | 3.53 | 107,490 | 1,016 | 3.75 | 136,313 | 1,343 | 3.91 | |||||||||
| Loans and loans held-for-sale: 2 | ||||||||||||||||||
| Commercial 3 | 1,635,510 | 33,665 | 8.17 | 1,593,875 | 31,348 | 7.80 | 1,667,981 | 27,947 | 6.65 | |||||||||
| Tax-exempt 1 | 3,492 | 38 | 4.32 | 3,678 | 40 | 4.31 | 4,161 | 47 | 4.48 | |||||||||
| Real estate | 576,580 | 6,421 | 4.42 | 573,579 | 6,351 | 4.39 | 631,450 | 6,000 | 3.77 | |||||||||
| Consumer | 76,088 | 1,503 | 7.84 | 95,032 | 2,331 | 9.73 | 139,705 | 3,563 | 10.12 | |||||||||
| Total loans | 2,291,670 | 41,627 | 7.21 | 2,266,164 | 40,070 | 7.02 | 2,443,297 | 37,557 | 6.10 | |||||||||
| Total earning assets | 3,054,958 | 49,891 | 6.48 | 3,063,152 | 48,546 | 6.29 | 2,926,949 | 40,996 | 5.56 | |||||||||
| Less: Allowance for credit losses | (24,079) | (29,693) | (27,530) | |||||||||||||||
| Cash and due from banks | 5,771 | 6,686 | 5,643 | |||||||||||||||
| Other assets | 292,574 | 281,504 | 266,292 | |||||||||||||||
| Total assets | $ | 3,329,224 | $ | 3,321,649 | $ | 3,171,354 | ||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| NOW | $ | 637,144 | $ | 5,386 | 3.35 | % | $ | 674,745 | $ | 4,970 | 2.92 | % | $ | 791,227 | $ | 2,880 | 1.44 | % |
| Money market checking | 650,925 | 3,691 | 2.25 | 537,592 | 3,294 | 2.43 | 219,334 | 643 | 1.16 | |||||||||
| Savings | 70,146 | 442 | 2.50 | 72,206 | 438 | 2.41 | 77,416 | 263 | 1.35 | |||||||||
| IRAs | 7,296 | 66 | 3.59 | 6,788 | 56 | 3.27 | 6,053 | 20 | 1.31 | |||||||||
| CDs | 590,517 | 8,014 | 5.38 | 664,281 | 8,702 | 5.20 | 314,723 | 2,380 | 3.00 | |||||||||
| Repurchase agreements and federal funds sold | 4,736 | — | — | 4,911 | — | — | 9,958 | 1 | 0.04 | |||||||||
| FHLB and other borrowings | 11 | — | — | 278 | — | — | 11,128 | 115 | 4.10 | |||||||||
| Senior term loan | 8,183 | 183 | 8.87 | 8,751 | 191 | 8.66 | 9,235 | 163 | 7.00 | |||||||||
| Subordinated debt | 73,510 | 810 | 4.37 | 73,446 | 809 | 4.37 | 73,254 | 787 | 4.26 | |||||||||
| Total interest-bearing liabilities | 2,042,468 | 18,592 | 3.61 | 2,042,998 | 18,460 | 3.58 | 1,512,328 | 7,252 | 1.90 | |||||||||
| Noninterest-bearing demand deposits | 975,122 | 975,164 | 1,377,880 | |||||||||||||||
| Other liabilities | 39,410 | 38,021 | 40,264 | |||||||||||||||
| Total liabilities | 3,057,000 | 3,056,183 | 2,930,472 | |||||||||||||||
| Stockholders’ equity | ||||||||||||||||||
| Common stock | 13,588 | 13,570 | 13,452 | |||||||||||||||
| Paid-in capital | 160,106 | 159,050 | 156,111 | |||||||||||||||
| Treasury stock | (16,741) | (16,741) | (16,741) | |||||||||||||||
| Retained earnings | 156,004 | 146,504 | 129,454 | |||||||||||||||
| Accumulated other comprehensive loss | (40,688) | (36,865) | (41,793) | |||||||||||||||
| Total stockholders’ equity attributable to parent | 272,269 | 265,518 | 240,483 | |||||||||||||||
| Noncontrolling interest | (45) | (52) | 399 | |||||||||||||||
| Total stockholders’ equity | 272,224 | 265,466 | 240,882 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,329,224 | $ | 3,321,649 | $ | 3,171,354 | ||||||||||||
| Net interest spread (tax-equivalent) | 2.87 | % | 2.71 | % | 3.66 | % | ||||||||||||
| Net interest income and margin (tax-equivalent) 1 | $ | 31,299 | 4.06 | % | $ | 30,086 | 3.90 | % | $ | 33,744 | 4.57 | % | ||||||
| Less: Tax-equivalent adjustments | $ | (193) | $ | (221) | $ | (295) | ||||||||||||
| Net interest spread | 2.84 | % | 2.68 | % | 3.62 | % | ||||||||||||
| Net interest income and margin | $ | 31,107 | 4.04 | % | $ | 29,865 | 3.87 | % | $ | 33,449 | 4.53 | % |
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-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 16.
2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
3 MVB Bank’s PPP loans totaling $2.7 million, $3.0 million and $13.6 million are included in this amount for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.
| Twelve Months Ended | Twelve Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2023 | December 31, 2022 | |||||||||||
| Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Cost | Average<br>Balance | Interest<br>Income/<br>Expense | Yield/<br>Cost | |||||||
| Assets | ||||||||||||
| Interest-bearing balances with banks | $ | 414,466 | $ | 21,043 | 5.08 | % | $ | 232,935 | $ | 1,613 | 0.69 | % |
| CDs with banks | — | — | — | 1,033 | 24 | 2.32 | ||||||
| Investment securities: | ||||||||||||
| Taxable | 221,395 | 5,576 | 2.52 | 236,344 | 3,496 | 1.48 | ||||||
| Tax-exempt 1 | 116,680 | 4,347 | 3.73 | 139,353 | 5,166 | 3.71 | ||||||
| Loans and loans held-for-sale: 2 | ||||||||||||
| Commercial 3 | 1,621,299 | 124,078 | 7.65 | 1,594,069 | 87,845 | 5.51 | ||||||
| Tax-exempt 1 | 3,732 | 163 | 4.37 | 4,661 | 203 | 4.36 | ||||||
| Real estate | 591,157 | 24,764 | 4.19 | 487,044 | 15,721 | 3.23 | ||||||
| Consumer | 108,988 | 10,793 | 9.90 | 103,345 | 13,017 | 12.60 | ||||||
| Total loans | 2,325,176 | 159,798 | 6.87 | 2,189,119 | 116,786 | 5.33 | ||||||
| Total earning assets | 3,077,717 | 190,764 | 6.20 | 2,798,784 | 127,085 | 4.54 | ||||||
| Less: Allowance for loan losses | (29,746) | (22,248) | ||||||||||
| Cash and due from banks | 6,659 | 5,670 | ||||||||||
| Other assets | 302,036 | 244,861 | ||||||||||
| Total assets | $ | 3,356,666 | $ | 3,027,067 | ||||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| NOW | $ | 697,266 | $ | 19,851 | 2.85 | % | $ | 707,282 | $ | 4,724 | 0.67 | % |
| Money market checking | 504,730 | 10,352 | 2.05 | 330,208 | 1,449 | 0.44 | ||||||
| Savings | 76,908 | 1,871 | 2.43 | 56,697 | 418 | 0.74 | ||||||
| IRAs | 6,662 | 194 | 2.91 | 6,216 | 71 | 1.14 | ||||||
| CDs | 576,726 | 29,392 | 5.10 | 170,648 | 3,814 | 2.24 | ||||||
| Repurchase agreements and federal funds sold | 5,662 | 1 | 0.02 | 10,987 | 6 | 0.05 | ||||||
| FHLB and other borrowings | 17,542 | 890 | 5.07 | 15,494 | 437 | 2.82 | ||||||
| Senior term loan | 9,007 | 766 | 8.50 | 2,328 | 163 | 7.00 | ||||||
| Subordinated debt | 73,415 | 3,219 | 4.38 | 73,159 | 3,072 | 4.20 | ||||||
| Total interest-bearing liabilities | 1,967,918 | 66,536 | 3.38 | 1,373,019 | 14,154 | 1.03 | ||||||
| Noninterest-bearing demand deposits | 1,074,292 | 1,357,426 | ||||||||||
| Other liabilities | 40,435 | 41,098 | ||||||||||
| Total liabilities | 3,082,645 | 2,771,543 | ||||||||||
| Stockholders’ equity | ||||||||||||
| Preferred stock | — | — | ||||||||||
| Common stock | 13,541 | 13,320 | ||||||||||
| Paid-in capital | 159,523 | 147,728 | ||||||||||
| Treasury stock | (16,741) | (16,741) | ||||||||||
| Retained earnings | 154,041 | 137,498 | ||||||||||
| Accumulated other comprehensive loss | (36,419) | (26,918) | ||||||||||
| Total stockholders’ equity attributable to parent | 273,945 | 254,887 | ||||||||||
| Noncontrolling interest | 76 | 637 | ||||||||||
| Total stockholders’ equity | 274,021 | 255,524 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 3,356,666 | $ | 3,027,067 | ||||||||
| Net interest spread (tax-equivalent) | 2.82 | % | 3.51 | % | ||||||||
| Net interest income and margin (tax-equivalent) 1 | $ | 124,228 | 4.04 | % | $ | 112,931 | 4.04 | % | ||||
| Less: Tax-equivalent adjustments | $ | (946) | $ | (1,128) | ||||||||
| Net interest spread | 2.79 | % | 3.47 | % | ||||||||
| Net interest income and margin | $ | 123,283 | 4.01 | % | $ | 111,803 | 3.99 | % |
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-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 16.
2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
3 MVB Bank’s PPP loans totaling $2.7 million and $13.6 million are included in this amount for the years ended December 31, 2023 and December 31, 2022, respectively.
Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)
| Quarterly | Year-to-Date | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | |||||||||||||
| Earnings and Per Share Data: | |||||||||||||||
| Net income | $ | 7,911 | $ | 3,867 | $ | 6,509 | 31,232 | 15,047 | |||||||
| Earnings per share from continuing operations - basic | $ | 0.62 | $ | 0.30 | $ | 0.47 | $ | 1.77 | $ | 1.01 | |||||
| Earnings per share from discontinued operations - basic | $ | — | $ | — | $ | 0.05 | $ | 0.69 | $ | 0.22 | |||||
| Earnings per share - basic | $ | 0.62 | $ | 0.30 | $ | 0.52 | $ | 2.46 | $ | 1.23 | |||||
| Earnings per share from continuing operations - diluted | $ | 0.61 | $ | 0.29 | $ | 0.45 | $ | 1.72 | $ | 0.96 | |||||
| Earnings per share from discontinued operations - diluted | $ | — | $ | — | $ | 0.05 | $ | 0.68 | $ | 0.21 | |||||
| Earnings per share - diluted | $ | 0.61 | $ | 0.29 | $ | 0.50 | $ | 2.40 | $ | 1.17 | |||||
| Cash dividends paid per common share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.68 | $ | 0.68 | |||||
| Book value per common share | $ | 22.68 | $ | 21.33 | $ | 20.69 | $ | 22.68 | $ | 20.69 | |||||
| Tangible book value per common share 1 | $ | 22.43 | $ | 21.08 | $ | 20.25 | $ | 22.43 | $ | 20.25 | |||||
| Weighted-average shares outstanding - basic | 12,740,193 | 12,722,010 | 12,604,193 | 12,694,206 | 12,279,462 | ||||||||||
| Weighted-average shares outstanding - diluted | 13,024,562 | 13,116,629 | 13,012,460 | 12,997,332 | 12,870,734 | ||||||||||
| Performance Ratios: | |||||||||||||||
| Return on average assets 2 | 1.0 | % | 0.5 | % | 0.8 | % | 0.9 | % | 0.5 | % | |||||
| Return on average equity 2 | 11.6 | % | 5.8 | % | 10.8 | % | 11.4 | % | 5.9 | % | |||||
| Net interest margin 3 4 | 4.06 | % | 3.90 | % | 4.57 | % | 4.04 | % | 4.04 | % | |||||
| Efficiency ratio 5 10 | 79.6 | % | 86.2 | % | 72.3 | % | 82.3 | % | 78.2 | % | |||||
| Overhead ratio 2 6 | 3.4 | % | 3.7 | % | 3.6 | % | 3.5 | % | 3.9 | % | |||||
| Equity to assets | 8.7 | % | 7.9 | % | 8.5 | % | 8.7 | % | 8.5 | % | |||||
| Asset Quality Data and Ratios: | |||||||||||||||
| Charge-offs | $ | 1,868 | $ | 8,064 | $ | 7,878 | $ | 18,479 | $ | 15,183 | |||||
| Recoveries | $ | 1,343 | $ | 2,205 | $ | 2,507 | $ | 9,185 | $ | 6,560 | |||||
| Net loan charge-offs to total loans 2 7 | 0.1 | % | 1.0 | % | 0.9 | % | 0.4 | % | 0.4 | % | |||||
| Allowance for credit losses | $ | 22,124 | $ | 24,276 | $ | 23,837 | $ | 22,124 | $ | 23,837 | |||||
| Allowance for credit losses to total loans 8 | 0.95 | % | 1.07 | % | 1.00 | % | 0.95 | % | 1.00 | % | |||||
| Nonperforming loans | $ | 8,267 | $ | 10,593 | $ | 11,165 | $ | 8,267 | $ | 11,165 | |||||
| Nonperforming loans to total loans | 0.4 | % | 0.5 | % | 0.5 | % | 0.4 | % | 0.5 | % | |||||
| Mortgage Company Equity Method Investees Production Data9: | |||||||||||||||
| Mortgage pipeline | $ | 706,873 | $ | 643,578 | $ | 678,345 | $ | 706,873 | $ | 678,345 | |||||
| Loans originated | $ | 1,020,128 | $ | 1,131,963 | $ | 407,070 | $ | 4,319,382 | $ | 3,120,577 | |||||
| Loans closed | $ | 724,453 | $ | 786,885 | $ | 388,417 | $ | 3,007,221 | $ | 2,628,149 | |||||
| Loans sold | $ | 639,788 | $ | 605,296 | $ | 326,003 | $ | 2,466,807 | $ | 2,325,709 |
1 Common equity less total goodwill and intangibles per common share, a non-U.S. GAAP measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 16.
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-GAAP financial measure.
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 and Warp Speed Holdings LLC, entities in which MVB has an ownership interest that are accounted for as equity method investments.
10 Includes net income from discontinued operations.
Non-GAAP Reconciliation: Net Interest Margin on a Full Tax-Equivalent Basis
The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:
| Three Months Ended | Twelve Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||
| Net interest margin - U.S. GAAP basis | |||||||||||||||
| Net interest income | $ | 31,107 | $ | 29,865 | $ | 33,449 | $ | 123,283 | $ | 111,803 | |||||
| Average interest-earning assets | 3,054,958 | 3,063,152 | 2,926,949 | 3,077,717 | 2,798,784 | ||||||||||
| Net interest margin | 4.04 | % | 3.87 | % | 4.53 | % | 4.01 | % | 3.99 | % | |||||
| Net interest margin - non-U.S. GAAP basis | |||||||||||||||
| Net interest income | $ | 31,107 | $ | 29,865 | $ | 33,449 | $ | 123,283 | $ | 111,803 | |||||
| Impact of fully tax-equivalent adjustment | 193 | 221 | 295 | 946 | 1,128 | ||||||||||
| Net interest income on a fully tax-equivalent basis | 31,299 | 30,086 | 33,744 | 124,228 | 112,931 | ||||||||||
| Average interest-earning assets | 3,054,958 | 3,063,152 | 2,926,949 | 3,077,717 | 2,798,784 | ||||||||||
| Net interest margin on a fully tax-equivalent basis | 4.06 | % | 3.90 | % | 4.57 | % | 4.04 | % | 4.04 | % |
Non-U.S. GAAP Reconciliation: Tangible Book Value per Common Share and Tangible Common Equity Ratio
(Unaudited) (Dollars in thousands, except per share data)
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Tangible Book Value per Common Share | |||||||||
| Goodwill | $ | 2,838 | $ | 2,838 | $ | 3,988 | |||
| Intangibles | 352 | 375 | 1,631 | ||||||
| Total intangibles | $ | 3,190 | $ | 3,213 | $ | 5,619 | |||
| Total equity attributable to parent | $ | 289,384 | $ | 271,416 | $ | 261,084 | |||
| Less: Total intangibles | (3,190) | (3,213) | (5,619) | ||||||
| Tangible common equity | $ | 286,194 | $ | 268,203 | $ | 255,465 | |||
| Tangible common equity | $ | 286,194 | $ | 268,203 | $ | 255,465 | |||
| Common shares outstanding (000s) | 12,758 | 12,726 | 12,618 | ||||||
| Tangible book value per common share | $ | 22.43 | $ | 21.08 | $ | 20.25 | |||
| Tangible Common Equity Ratio | |||||||||
| Total assets | $ | 3,313,882 | $ | 3,437,583 | $ | 3,068,850 | |||
| Less: Total intangibles | (3,190) | (3,213) | (5,619) | ||||||
| Tangible assets | $ | 3,310,692 | $ | 3,434,370 | $ | 3,063,231 | |||
| Tangible assets | $ | 3,310,692 | $ | 3,434,370 | $ | 3,063,231 | |||
| Tangible common equity | $ | 286,194 | $ | 268,203 | $ | 255,465 | |||
| Tangible common equity ratio | 8.6 | % | 7.8 | % | 8.3 | % |
16