Portion of Gain to Be Utilized for the Continued Build Out of MVB’s
Fintech Vertical
MVB Financial Corp. (“MVB” or the “Company”) (Nasdaq: MVBF), the holding
company for MVB Bank, Inc., and the Bank’s subsidiaries, continues to
implement its MVB 3.0 strategy of seeking “blue ocean” opportunities,
including partnership with fintech companies.
MVB continues to carve a niche in the fintech industry by making
strategic investments in fintech companies. To date, MVB has invested a
total of $3.1 million in various fintech companies. After a recent
valuation of MVB’s fintech investment portfolio, MVB intends to
recognize a pre-tax gain on its equity investment of $13.5 million that
will be recognized in the Second Quarter of 2019. MVB’s fintech
investment portfolio is now valued at approximately $17.3 million. Over
the past three years, MVB has had a 458% gain in value.
To leverage this growth, MVB plans to utilize a portion of the gain into
additional investments, new hires, technology and related costs to
further build out its fintech vertical. MVB also plans to utilize the
gain to retire the remaining subordinated debt that is outstanding as of
July 1, 2019.
“MVB’s fintech vertical hit a tipping point during 2018 and is
positively impacting our balance sheet and income statement. At MVB, we
are leveraging technology, creativity and innovation to modernize as we
move from the old model of banking to the new. We welcome disruptors and
actually embrace them and invest in them,” said Larry F. Mazza,
President and CEO, MVB Financial Corp.
“MVB strives to be a trusted partner and thus a preferred bank of the
fintech industry, a strategy that has brought significant shareholder
value. This is an example of our model going beyond traditional banking
and leveraging the disruption occurring in the financial services
industry to the benefit of MVB shareholders.”
About MVB Financial Corp.
MVB Financial Corp. (“MVB Financial” or “MVB”), the holding company of
MVB Bank, is publicly traded on The Nasdaq Capital Market® under the
ticker “MVBF.” Nasdaq is a leading global provider of trading, clearing,
exchange technology, listing, information and public company services.
Through its subsidiary, MVB Bank, Inc., and the bank’s subsidiaries, MVB
Mortgage and MVB Community Development Corporation, the company provides
financial services to individuals and corporate clients in the
Mid-Atlantic region. For more information about MVB, please visit ir.mvbbanking.com.
Forward-looking Statements
MVB Financial Corp. 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. These forward-looking statements are based on
current expectations about the future and 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, as well as statements regarding
MVB’s intent to recognize a holding gain on its equity investment in
fintech companies and the anticipated use of the proceeds from such
gains, as well as MVB’s future plans with regard to its fintech line of
business. When words such as “plans,” “believes,” “expects,”
“anticipates,” “continues,” “may” or similar expressions occur in this
Press Release, the Company is making forward-looking statements. 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
the forward-looking statements contained in this Press Release. Those
factors include, but are not limited to: credit risk; changes in market
interest rates; revaluation of equity investments, including MVB’s
investments in fintech companies; inability to further scale up the
fintech line of business; competition; economic downturn or recession;
and government regulation and supervision. Additional factors that may
cause our actual results to differ materially from those described in
our forward-looking statements can be found in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2018, as well as its
other filings with the SEC, which are available on the SEC website at www.sec.gov.
Except as required by law, the Company undertakes no obligation to
update or revise any forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190429005703/en/
Copyright Business Wire 2019