MVB in W.Va. leverages fintech sale by selling securities at a loss

MVB Financial in Fairmont, W.Va., repositioned its securities portfolio.

The company, which recently sold payments fintech Victor Technologies, said in a press release that it sold $73 million of available-for-sale investment securities with a weighted-average tax-equivalent yield of 1.70% and a weighted-average life of nearly 10 years.

The securities were sold at a pretax loss of about $7.6 million. MVB said it expects to redeploy proceeds into higher-yielding securities.

The repositioning and expense efficiencies from selling Victor should add 30-35 cents to earnings per share on an annualized basis.

“We believe this repositioning represents an attractive use of capital that enhances shareholder value while better aligning our balance sheet with our strategic objectives,” Larry Mazza, MVB’s president and CEO, said in the release.