CHARLESTON, W.Va. -- MVB Financial Corp., the corporate parent of Fairmont-based MVB Bank, is buying Potomac Mortgage Group of Fairfax, Va., said Larry Mazza, MVB's chief executive officer.
"Potomac Mortgage Group is one of the top 100 mortgage lenders in the country," Mazza said.
Ed Dean is Potomac Mortgage's chief executive officer. "Ed is originally from Clarksburg," Mazza said. "I've known him since he was 12 years old. We hired him when he was 22 years old and I was at Empire National Bank. Twenty years later, he has built a fantastic company."
With the addition of Potomac Mortgage Group's annual production of mortgages, MVB Bank and Potomac Mortgage Group are expected to produce about $1 billion in mortgages a year, Mazza said.
A residential mortgage company, Potomac Mortgage Group has 68 employees and offices in Fairfax, McLean and Reston, Va.
Mazza said Potomac Mortgage currently sells 100 percent of the mortgages it originates to other institutions. "We're going to change some of that -- we'll keep some high-quality mortgages and service some of that inside MVB," he said. "That will be a big advantage and very profitable for us. This will give us an opportunity to double our earnings in a year."
When mortgages are sold to other institutions the originator receives a fee. This means the acquisition of Potomac Mortgage Group will give MVB more non-interest income. Mazza said this is important in today's ultra-low interest rate environment, when there is a slim margin between what banks pay for money and what they earn on loans.
The acquisition also "gives us a beachhead in northern Virginia," Mazza said. "I think, unequivocally, northern Virginia, specifically Fairfax County, is one of the best banking markets in the country. During the Great Recession the closer you were to D.C. the better you withstood the recession.