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

April 20, 2018

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MIDDLETOWN, Md., April 20, 2018 /PRNewswire/ — Middletown Valley Bank, Inc. (OTCPink: MNVB) reported increased quarterly earnings and record total assets for the first quarter of 2018. Net income for the quarter ended March 31, 2018 was $501 thousand and earnings per share of $0.22 (share count is 948 thousand higher in 1Q18 vs. 1Q17,) as compared to net income of $495 thousand and earnings per share of $0.39 recorded for the first quarter 2017. Total assets crested $373 million in the first quarter 2018 to $373.4 million, an increase of $68.8 million (23%) versus the first quarter ended 2017.

The increase in first quarter 2018 earnings versus first quarter 2017 was primarily due to a net interest income increase of $668 thousand and reduction in income taxes of $95 thousand more than offsetting the $593 thousand increase in non-interest expense and $181 thousand increase in provision for loan losses. The Net interest income year over year increase was driven by a four basis point increase in net interest margin and a $64.6 million year over year increase in net loans. Income taxes were positively impacted by the lowered corporate tax rate under the Tax Cuts and Jobs Act of 2017. Non-interest expense growth was primarily caused by an increase in personnel and occupancy costs to support the larger institution and to build for future growth.

Net charge offs were zero in the first quarter of 2018 and 2017. Nonperforming assets increased 856 thousand in the first quarter 2018 versus 2017 which was primarily related to one loan on which a full recovery is expected. Nonperforming assets to total loans decreased to 1.46% in the quarter ended March 31, 2018 versus 1.50% for the quarter ended March 31, 2017. The ratio of Allowance for loan losses to total loans stood at 1.10% and 1.13% for the quarters ended March 31, 2018 and 2017, respectively.

The balance sheet growth mentioned previously for the first quarter ended March 31, 2018 was driven by net loan growth of $64 million (28%) to $239 million and $5.7 million increase in cash to $24.8 million which were funded by a $51 million (18%) increase in deposits and a $18 million increase in equity due to the fourth quarter 2017 common equity capital raise and retained earnings. The fourth quarter 2017 capital raise increased the share count in the first quarter 2018 by 948 thousand shares. The dividend declared in the first quarter March 31, 2018 was increased to $0.03 share from the previous quarter of $0.02 share.

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

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

Middletown Valley Bank

March 31, 2018

Summary Financials

(dollars in thousands)

Balance Sheet

March 31,

March 31,

December 31,

2018

2017

2017

(unaudited)

(unaudited)

(audited)

Cash

$                24,848

$               19,155

$                   20,053

FHLB Stock

325

255

255

Investments, at market value

45,441

46,884

47,458

Loans, net of Reserve

289,013

225,012

280,183

Fixed assets

5,693

5,139

5,615

Other assets

8,079

8,120

7,660

Total Assets

$              373,399

$             304,565

$                 361,224

Deposits

$              328,146

$             276,963

$                 315,932

Borrowings

Other liabilities

1,880

1,881

1,904

Total Liabilities

330,026

278,844

317,836

Equity

44,333

26,151

43,815

Unreaized gain(loss), net of tax

(960)

(430)

(427)

Total Equity

43,373

25,721

43,388

Total Liabilities & Equity

$              373,399

$             304,565

$                 361,224

For the Three Months Ended

Income Statement

March 31, 

March 31, 

2018

2017

(unaudited)

(unaudited)

Total interest and fee income

$           3,546,293

$          2,654,856

Total interest expense

444,313

220,419

Net interest income 

3,101,980

2,434,437

Provision for loan losses

203,735

22,667

Net interest income after provision

2,898,245

2,411,770

Other non-interest income

281,825

264,062

Other non-interest expense

2,502,203

1,909,309

Pre-tax net income

677,867

766,523

Income taxes

176,544

271,229

Net income

$              501,323

$             495,294

Middletown Valley Bank

Selected Financial Data 

March 31,

March 31,

December 31,

2018

2017

2017

(dollars in thousands)

(unaudited)

(unaudited)

(audited)

Total Assets 

$           373,399

$          304,565

$            361,224

Loans 

289,013

225,012

280,183

Deposits 

328,146

276,963

315,932

Shareholder’s equity 

43,373

25,721

43,388

Nonperforming Assets:

Accruing troubled debt restructures

$                  752

$              1,030

$                   759

Loans 90 past due and still accruing 

Nonaccrual loans 

3,350

1,786

3,134

Foreclosed properties 

167

597

167

Total nonperforming assets 

$               4,269

$              3,413

$                4,060

For the Three Months Ended

March 31,

March 31,

Summary of Operating Results 

2018

2017

(dollars in thousands)

(unaudited)

(unaudited)

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

$           881,602

$          789,190

Allowance for loan loss provision, pre-tax

203,735

22,667

Tax expense

176,544

271,229

Net Income

$           501,323

$          495,294

Charge-Offs 

$                    20

$                   12

(Recoveries)

(5)

(3)

Net charge-offs

$                    15

$                     9

Per Common Share Data 

Basic earnings per share

$                 0.22

$                0.39

Common shares outstanding 

2,233,820

1,285,774

Dividends declared 

$                 0.03

$                0.02

Book value per share

$               19.42

$              20.00

Selected Unaudited Financial Ratios

Return on average assets

0.56%

0.69%

Return on average equity 

4.66%

7.84%

Allowance for loan losses to total loans

1.10%

1.13%

Nonperforming assets to total loans

1.46%

1.50%

Net charge-offs to average loans

0.00%

0.00%

Common equity tier 1 to risk-weighted assets 

15.93%

12.20%

Tier 1 capital to risk-weighted assets 

15.93%

12.20%

Total capital to risk-weighted assets 

17.18%

13.45%

Average equity to average assets 

12.04%

8.81%

Net interest margin 

3.65%

3.59%

Loan to deposit ratio

88.89%

82.08%

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SOURCE Middletown Valley Bank

Related Links

www.mvbbank.com

Category: Precious Metals