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Potomac Mortgage, Intercoastal Mortgage Combine to Expand Mortgage Banking Operations in Mid-Atlantic Region
Monday 09 March 2020

9 March 2020 - US-based mortgage lender Potomac Mortgage Group, Inc. (d/b/a MVB Mortgage) has entered into an agreement with Intercoastal Mortgage Company (ICMC) to form an expanded residential mortgage/lending company in the Mid-Atlantic region, the company said.

MVB Bank is the parent company of MVB Mortgage. MVB Financial Corp. (NASDAQ: MVBF) is the parent company of MVB Bank.

Per 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 USD 7.5m in preferred units.

MVB will recognise 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 USD 1.40 per common share.

MVB Financial Corp., the holding company of MVB Bank, Inc., is a 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, MVB Community Development Corp. and Chartwell Compliance, the company provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond.

Intercoastal Mortgage company, a Van Metre company is a mortgage lender in the Washington, DC area.
Details
Date Published: 09/03/2020
Target: Potomac Mortgage Group, Inc. (d/b/a MVB Mortgage)
Country: USA
Sector: Banking/Financial Services
Type: Merger
Financing: Stock
Status: Agreed
Vendor: MVB Financial Corp
Buyer: Intercoastal Mortgage Company (ICMC)
Comment:
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 USD 7.5m in preferred units.

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