MVB Financial Corp., (OTC Markets Group OTCQB: MVBF), today announced it has reached an agreement to purchase the northern Virginia residential mortgage company Potomac Mortgage Group, LLC (PMG), with offices in Fairfax, McLean and Reston. MVB will be purchasing PMG for approximately $19 million in cash and MVB common shares.
The addition of PMG is expected to be accretive to MVB’s earnings beginning in the first quarter of 2013. PMG will retain its identity and will become a wholly-owned subsidiary of MVB Bank, Inc. With the addition of PMG’s annual production of mortgages, MVB Bank and PMG are expected to become a $1 billion mortgage production unit at a time when MVB Bank is experiencing record mortgage lending. PMG was rated in the Top 100 Mortgage Companies, based on mortgage loan production, in the country in 2011. MVB has received the highest Superior 5-Star Rating from Bauer Financial, Inc. during the past several years for the overall safety, soundness and quality of the bank, which ranks among the best in the industry.
The transaction is scheduled to close before the end of the current calendar year pending regulatory approvals and other customary closing conditions. PMG’s CEO Ed Dean and management team will continue to operate the mortgage subsidiary. In addition, Dean will oversee MVB’s total mortgage operations. Significant to the deal is PMG’s experienced 68 person workforce, including a strong team of professional mortgage lenders. An additional 30 employees are employed through PMG’s 50%-owned operations center, which will also support MVB’s overall mortgage area.
Commenting on this transaction, MVB Financial Corp. CEO Larry Mazza said, “We believe MVB’s success in the retail mortgage lending arena will be strengthened by the addition of PMG’s mortgage business with its talent, technology platform and high quality operations. In my opinion northern Virginia is one of the best markets for mortgage banking in the country and we are ecstatic to be in this growing and vibrant area. MVB is very familiar with Ed Dean as we have known and worked together with him for more than 20 years in various banking relationships and with PMG. We believe he and his team are some of the best in the mortgage banking business. Ed is a proven leader who can make this strategic partnership with PMG into a positive game changer for both organizations. I am happy we are on the same team.”
A native of Clarksburg, West Virginia, PMG’s Ed Dean said, “Joining forces with an organization the caliber of MVB Bank is a unique opportunity to allow PMG to lend beyond its current geographic scope and our combined operations and systems will support significant mortgage lending growth potential. We’re very pleased to become part of MVB.”
About MVB Financial Corp.
MVB Bank, Inc. is a wholly-owned subsidiary of MVB Financial Corp (OTCQB: MVBF), with locations in Marion, Monongalia and Harrison counties in North Central West Virginia, and Berkeley and Jefferson Counties in the Eastern Panhandle of West Virginia. The OTCQB is a market tier operated by the OTC Market Group Inc. for over-the-counter traded companies that are current in their reporting with a U.S. regulator. For additional information visit MVB’s investor relations webpage at ir.mvbbanking.com
