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MVB Mortgage and Intercoastal Mortgage Company Enter Agreement to Form One of the Largest Independent Mortgage Banking Operations in the Mid-Atlantic Region
FAIRMONT, W. Va.--(BUSINESS WIRE)-- MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial” or “MVB”) and its wholly-owned subsidiary MVB Bank, Inc. (the “Bank”)
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[{"type":"text","content":" FAIRMONT, W. Va.--(BUSINESS WIRE)--\nMVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial” or “MVB”) and its wholly-owned subsidiary MVB Bank, Inc. (the “Bank”) announce that the Bank’s subsidiary Potomac Mortgage Group, Inc. (dba MVB Mortgage) has entered into an agreement with Intercoastal Mortgage Company (“ICMC”), a Van Metre Company. MVB Mortgage and ICMC will form one of the largest independently owned residential mortgage lending operations in the Mid-Atlantic Region: Intercoastal Mortgage, LLC.\n\n\nPer the terms of the agreement, MVB Mortgage will contribute substantially all its assets and in exchange will receive common units representing 47% of the common interest of ICMC, as well as $7.5 million in preferred units.\n\n\nMVB will recognize its ownership as a fair value equity investment and will no longer consolidate MVB Mortgage’s financial results. As such, MVB management expects the transaction to increase MVB tangible book value by $1.40 per common share.\n\n\n“Timing is everything with the 10-year treasury at a near all-time low, and this unique opportunity with Intercoastal Mortgage allows us to take a smaller piece of a much larger pie for greater returns for the short and long term. This strategy is one more example of how MVB Financial has explored creative ways to enhance shareholder value,” said Larry F. Mazza, CEO and President, MVB Financial Corp. “This new relationship positions MVB to have a larger share of one of the best markets in the nation and to gain synergies and economies, as well as technology, partnering with the phenomenal Van Metre Company, one of the best trusted partners you can have.”\n\n\nUpon completion of the transaction, Ed Dean, CEO, MVB Mortgage, and Peter Cameron, President, MVB Mortgage, will become the CEO and President, respectively, of Intercoastal Mortgage, LLC. Tom Pyne, COO, ICMC, will become COO of the combined entity. The deal is expected to close upon receipt of regulatory approvals.\n\n\n“This transaction is more than just a win-win opportunity. MVB Mortgage and ICMC have been ownership partners of Lenderworks (a shared services platform created in 2011) since 2013. We both saw record volume in 2019 and are experiencing record volume right now. We are highly compatible in our philosophies, our technologies and the management of our lending practices. In a market where sc...