MVB Financial in Fairmont, W.Va., said it will report a large financial gain from its fintech investments.
The $1.8 billion-asset company said in a press release Monday that it should report a pretax gain of $13.5 million in the second quarter that reflects significant appreciation in the portfolio. MVB said it has invested about $3.1 million in fintech.
“MVB’s fintech vertical hit a tipping point during 2018 and is positively impacting our balance sheet and income statement,” its president and CEO, Larry Mazza, said in the release.
MVB’s investments are part of a broad strategy aimed at attracting deposits and providing investment capital and banking services to fintech firms.
“MVB strives to be a trusted partner and thus a preferred bank of the fintech industry, a strategy that has brought significant shareholder value,” Mazza said.
MVB plans to use the gain to expands its dealings with fintech by investing in new hires and technology, Mazza said.
The company also plans to retire all remaining subordinated debt on its balance sheet, which should pare future expenses. In its annual report, filed March 8, MVB reported that it had $17.5 million in subordinated debt, noting that it paid $1.8 million in interest on the debt last year.
