MVB Buys Potomac Mortgage for $19 Million
MVB Bank Inc., Fairmont, W.Va., has agreed to purchase Potomac Mortgage Group LLC for $19 million in cash and stock. PMG will keep its name and operate as a wholly owned subsidiary of MVB Bank.
PMG has offices in the Virginia cities of Fairfax, McLean and Reston. Between its own operations and the ones being acquired, MVB expects to become an over $1 billion per year producer.
The deal should close before the end of 2012. PMG’s CEO Ed Dean will not only continue to run that shop, but oversee all of MVB’s mortgage operations as well.
Dean said the transaction will allow “PMG to lend beyond its current geographic scope and our combined operations and systems will support significant mortgage lending growth potential.”
MVB’s purchase comes at a time when its larger bank competition is trying to figure out how to deal with Basel III.
PMG has 68 employees, plus an additional staff of 30 works at an operations center where PMG has a 50% ownership stake. That operations office will now provide support to MVB’s own mortgage lending function.