Core Insights - MVB Financial (MVBF) reported a quarterly loss of $0.75 per share, significantly missing the Zacks Consensus Estimate of $0.29, and compared to earnings of $0.16 per share a year ago, representing an earnings surprise of -358.62% [1] - The company posted revenues of $27.1 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 24.93%, and down from $33.24 million year-over-year [2] - MVB Financial shares have increased by approximately 30.6% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $37.7 million, and for the current fiscal year, it is $1.08 on revenues of $141 million [7] - The estimate revisions trend for MVB Financial was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Northeast industry, to which MVB Financial belongs, is currently in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Another company in the same industry, HarborOne Bancorp (HONE), is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year change of +110% [9]

Financial Performance - MVB Financial reported a net income of $17.1 million for Q3 2025, translating to $1.36 and $1.32 per basic and diluted share, respectively[2]. - Net interest income increased by 3.1% to $26.8 million, driven by robust loan growth of 4.9%, with total loan balances reaching $2.26 billion[9][17]. - Total noninterest income surged by 335.6% to $34.6 million, primarily due to the gain from the sale of Victor, despite a $7.6 million loss from securities repositioning[9][14]. - Net interest income for Q3 2025 was $26,573,000, compared to $25,780,000 in Q2 2025, reflecting a growth of 3.1%[49]. - Earnings per share (basic) for the third quarter of 2025 was $1.36, compared to $0.16 in the second quarter of 2025[37]. - Earnings per share (diluted) increased to $1.32 in Q3 2025 from $0.16 in Q3 2024, reflecting strong performance[48]. - The efficiency ratio improved to 54.5% in Q3 2025 from 88.7% in Q3 2024, indicating better cost management[48]. Asset and Liability Management - Total assets as of September 30, 2025, were $3,232,953, a slight increase from $3,224,008 in June 30, 2025, but a decrease from $3,418,756 in September 30, 2024[41]. - Total liabilities decreased to $2,905,201 as of September 30, 2025, from $2,921,693 in June 30, 2025, and $3,115,556 in September 30, 2024[41]. - Total stockholders' equity increased to $327,752 as of September 30, 2025, compared to $302,315 in June 30, 2025, and $303,200 in September 30, 2024[41]. Loan and Credit Quality - Nonperforming loans totaled $26.2 million, or 1.2% of total loans, reflecting an increase from the previous quarter due to one specific credit downgrade[10]. - The provision for credit losses totaled $4.4 million for the third quarter of 2025, up from $2.0 million in the prior quarter[26]. - The allowance for credit losses for loans was 1.03% of total loans at September 30, 2025, compared to 0.97% at June 30, 2025[27]. - Criticized loans as a percentage of total loans decreased to 4.1% as of September 30, 2025, from 5.2% as of June 30, 2025[24]. - Nonperforming loans increased to $26,214,000, up from $21,055,000 in the previous year, suggesting potential asset quality concerns[48]. - The allowance for credit losses was $23,322,000, compared to $21,499,000 in the same period last year, reflecting increased provisions for potential loan losses[48]. Shareholder Returns - The company completed a $10.0 million share repurchase program, buying back 473,584 shares at an average price of $21.15 per share[4]. - The Company issued a quarterly cash dividend of $0.17 per share during the third quarter of 2025, consistent with previous quarters[22]. - Cash dividends paid per common share remained stable at $0.17 for both Q3 2025 and Q3 2024[48]. Capital Ratios - The Community Bank Leverage Ratio was 11.1%, while the Tier 1 Risk-Based Capital Ratio stood at 14.1% as of September 30, 2025[21]. - The Total Risk-Based Capital Ratio was 15.0% as of September 30, 2025, down from 15.5% as of June 30, 2025[22]. - Tangible common equity ratio improved to 10.1% in Q3 2025, up from 9.3% in Q2 2025[51]. Other Financial Metrics - The average yield on loans for the three months ended September 30, 2025, was 6.55%, down from 6.78% in June 30, 2025, and 7.08% in September 30, 2024[43]. - Total interest-bearing liabilities were $2,071,007 for the three months ended September 30, 2025, with an average cost of 3.38%[43]. - Noninterest-bearing deposits were $862,124 as of September 30, 2025, compared to $886,657 in June 30, 2025, and $910,787 in September 30, 2024[43]. - The net interest margin (tax-equivalent) for Q3 2025 was 3.55%, slightly down from 3.61% in Q3 2024[48]. - The impact of fully tax-equivalent adjustment on net interest income was $180,000 in Q3 2025, compared to $177,000 in Q2 2025[49].

Group 1: Swift's Distributed Ledger Initiative - Swift has formed a consortium to develop a distributed ledger aimed at supporting real-time international payments and accommodating digital assets [1] - The consortium is collaborating with Consensys to create a prototype for the ledger, leveraging Swift's extensive network of over 11,000 banks across 200 countries [2] - The initial focus will be on enhancing real-time payments, addressing interoperability issues that currently hinder cross-border transactions [3] Group 2: Features of the Distributed Ledger - The ledger will utilize smart contracts to automate payment triggers based on specific conditions, facilitating the use of various digital currencies including stablecoins and cryptocurrencies [4] - Swift's CEO emphasized the rapid development of infrastructure to support future payment solutions [5] Group 3: Ripple's Cross-Border Payment Solutions - Ripple has signed an agreement with i-payout to enable real-time payments to recipients in the U.S. and Canada, targeting banks and payment firms [7] - The collaboration aims to expand to recipients outside the U.S. by the end of 2025, utilizing Ripple's USD-backed stablecoin [8] - Ripple's initiatives are part of a broader effort to modernize global money movement, enhancing payment speed and infrastructure [9] Group 4: PayPal's Investment in EMEA - PayPal plans to invest $100 million in the Middle East and Africa over the coming years, focusing on technology launches and partnerships [13][14] - This investment follows the establishment of a regional hub in Dubai, aiming to support local entrepreneurs and businesses [14] Group 5: Mobile Wallet Adoption in the U.K. - Mobile wallet usage in the U.K. has surged, with 57% of adults using them in 2024, up from 42% in 2023 [15] - The increase in mobile wallet adoption correlates with a rise in online and contactless payments, with 61% of card payments being contactless [16] - Predictions indicate that cash usage will decline to 4% of payments by 2034, while card payments will account for about 67% [17] Group 6: BBVA's Virtual Card Launch - BBVA has partnered with Mastercard to launch a virtual card in Mexico, aimed at enhancing security and processing speed for travel agencies [18][19] - The virtual card technology will allow BBVA to issue unique virtual numbers for each transaction, improving control for corporate users [19] Group 7: Coinbase's Support for Stablecoins - Coinbase is integrating StraitsX's Singapore dollar-backed stablecoin, XSGD, to facilitate cross-border payments and local currency conversions [21][22] - This move is part of Coinbase's broader strategy to expand its stablecoin offerings and support AI-driven commerce [23] Group 8: Banco Santander's BNPL Service - Banco Santander's Zinia pay-over-time service is now available on Amazon in Spain, allowing installment payments for purchases between 60 euros and 3,000 euros [24][25] - Despite BNPL being used for only 5% of online purchases in Spain, there is significant consumer interest in such options [26]

Core Insights - MVB Bank has partnered with Aeropay to develop compliant bank-to-bank payment solutions, enhancing Aeropay's payment infrastructure with MVB's expertise in ACH and Real-Time Payments [1][2] - The collaboration aims to expand Aeropay's real-time payment capabilities and simplify payment experiences for customers [2] - MVB Bank is committed to working with fintech innovators like Aeropay to shape the future of payments, particularly in regulated industries such as gaming and daily fantasy sports [3][4] Company Overview - MVB Bank, a subsidiary of MVB Financial, provides a range of financial services tailored for individuals and corporate clients in the Mid-Atlantic region [3] - The bank offers account structures and operational flexibility to manage complex money movements in regulated and high-growth sectors [2] Partnership Details - The partnership with Aeropay is expected to strengthen the foundation of Aeropay's payments infrastructure, with a focus on smarter, faster, and fully bank-connected money movement [3] - Earlier in the year, Aeropay also partnered with Regent Bank to expand its banking network for secure transactions [4] - Aeropay launched an in-house bank aggregator called Aerosync to increase customer conversions while lowering risk [5]

Financial Performance - Net income attributable to the parent was $2,002 thousand for the three months ended June 30, 2025, a decline of 51.8% from $4,089 thousand in the same period of 2024[17]. - Earnings per common shareholder (basic) decreased to $0.16 for the three months ended June 30, 2025, compared to $0.32 in the same quarter of 2024[17]. - Comprehensive income for the three months ended June 30, 2025, was $252 thousand, significantly lower than $6,502 thousand in the same period of 2024[18]. - Net income for the six months ended June 30, 2025, was $5,561,000, compared to $8,651,000 for the same period in 2024, reflecting a decrease of approximately 35.5%[20]. - The net income available to common shareholders for the three months ended June 30, 2025, was $2.002 million, compared to $4.089 million for the same period in 2024, representing a decline of approximately 51.0%[123]. - Net income for the three months ended June 30, 2025 was $2.0 million, a decrease from $4.1 million for the same period in 2024[140]. Asset and Liability Management - Total assets increased to $3,224,008 thousand as of June 30, 2025, up from $3,128,704 thousand at December 31, 2024, representing a growth of 3.06%[15]. - Total liabilities as of June 30, 2025, were $2,899,096 thousand, down from $3,093,544 thousand in 2024, indicating a reduction in leverage[145]. - Total stockholders' equity increased to $310,054,000 as of March 31, 2025, up from $305,791,000 at the end of 2024, representing a growth of about 0.9%[19]. - The equity to assets ratio decreased from 9.8% at December 31, 2024, to 9.4% at June 30, 2025[197]. - Liquid assets totaled $472.9 million as of June 30, 2025, supporting the Bank's ability to meet cash obligations[202]. Loan Portfolio - Net loans receivable rose to $2,132,524 thousand, an increase of 2.18% from $2,080,468 thousand at the end of 2024[15]. - Total loans amounted to $2,153,396 thousand, an increase of 2.6% from $2,099,117 thousand on December 31, 2024[40]. - Commercial loans totaled $1,485,924 thousand, up 4.9% from $1,416,856 thousand at the end of 2024[40]. - Residential real estate loans decreased to $639,771 thousand, down 1.4% from $650,708 thousand[40]. - The Bank's loan portfolio totaled $2.15 billion as of June 30, 2025, up from $2.10 billion as of December 31, 2024, indicating a growth of approximately 2.4%[181]. Income and Expenses - Net interest income after provision for credit losses was $23,790 thousand for the three months ended June 30, 2025, down 12.5% from $27,316 thousand in the same period of 2024[16]. - Noninterest income totaled $7,945 thousand for the three months ended June 30, 2025, a 11.23% increase from $7,142 thousand in the prior year[16]. - Total noninterest expenses decreased slightly to $28,569 thousand, down from $28,930 thousand in the same quarter of 2024[16]. - Interest income for the three months ended June 30, 2025, was $42,384 thousand, a decrease of 8.8% from $46,127 thousand in the same period of 2024[132]. - Total interest income decreased by $3.7 million, or 8.1%, to $42.4 million for the three months ended June 30, 2025, from $46.1 million for the same period in 2024[155]. Credit Losses and Provisions - The allowance for credit losses increased to $20,785 thousand as of June 30, 2025, compared to $19,663 thousand at December 31, 2024, indicating a proactive approach to potential credit risks[15]. - The provision for credit losses for the three months ended June 30, 2025, was $2,031,000, compared to a release of $1,803,000 for the same period in 2024[73]. - Charge-offs for the six months ended June 30, 2025, totaled $2,000,000, with $1,000,000 related to commercial notes secured by business assets and $1,000,000 related to the subprime automotive segment[74]. - The total allowance for credit losses (ACL) was $20,785,000, an increase from $19,165,000 at March 31, 2025[73]. - The ACL methodology includes a discounted cash flow approach with a one-year reasonable forecast period[64]. Deposits and Funding - Total deposits grew to $2,804,423 thousand, reflecting an increase of 4.12% compared to $2,693,615 thousand at December 31, 2024[15]. - The company experienced a net change in deposits of $109,606,000 during the six months ended June 30, 2025, contrasting with a decrease of $18,624,000 in the same period of 2024[20]. - Fintech deposits rose to $1.16 billion as of June 30, 2025, up from $964.1 million at December 31, 2024, driven by increases in banking-as-a-service and digital asset deposits[188]. Investments and Securities - As of June 30, 2025, the fair value of available-for-sale investment securities was $396.6 million, down from $410.9 million as of December 31, 2024, reflecting a decrease of approximately 3.4%[35]. - The company reported unrealized losses of $34.4 million on available-for-sale debt securities as of June 30, 2025, with no intent to sell these securities at such fair values[38]. - The total amortized cost of available-for-sale debt securities was $430.5 million as of June 30, 2025, with a fair value of $396.6 million, indicating a loss of approximately 7.9%[35]. - The carrying value of the investment in ICM was $24.1 million as of June 30, 2025[85]. - The carrying value of the investment in Warp Speed was $55.8 million as of June 30, 2025[86]. Operational Efficiency - The efficiency ratio for the six months ended June 30, 2025, was 85.0%, compared to 81.3% in 2024, indicating a deterioration in operational efficiency[147]. - Noninterest expense was $28.6 million for the three months ended June 30, 2025, a slight decrease from $28.9 million for the same period in 2024, with personnel costs comprising approximately 55.3% of total noninterest expense[170]. Market and Economic Conditions - The unemployment rate in the United States was 4.4% for June 2025, reflecting the economic conditions in the Bank's primary market areas[206]. - As of June 30, 2025, the Bank expects potential economic volatility over the next one to two years, impacting credit loss rates[65].

Group 1: Earnings Performance - MVB Financial reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.31 per share, representing an earnings surprise of -51.61% [1] - The company posted revenues of $33.73 million for the quarter, missing the Zacks Consensus Estimate by 6.06%, compared to revenues of $34.71 million a year ago [2] - Over the last four quarters, MVB Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - MVB Financial shares have increased by approximately 14.1% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.39 for the coming quarter and $1.41 for the current fiscal year [7] - The estimate revisions trend for MVB Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Banks - Northeast industry, to which MVB Financial belongs, is currently in the top 15% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact MVB Financial's stock performance [5]

MVB Financial Corp. Announces Second Quarter 2025 Results [Executive Summary & CEO Commentary](index=1&type=section&id=Executive%20Summary%20%26%20CEO%20Commentary) The company reported net income of $2.0 million, highlighting accelerated loan growth and improved asset quality despite earnings falling short of expectations Second Quarter 2025 Key Financials | Metric | Q2 2025 | | :----- | :------ | | Net Income | $2.0 million | | Basic EPS | $0.16 | | Diluted EPS | $0.15 | Second Quarter 2025 Performance Highlights (vs. Q1 2025) | Metric | Change | | :----- | :----- | | Pre-tax, pre-provision income | +3.5% | | Net interest margin | +3 bps (to 3.66%) | | Noninterest income | +13.4% | | Loan growth | +4.4% | | Deposit growth | +8.5% | - The Company repurchased **314,580 shares for $6.4 million** at an average cost of $20.28 per share, reflecting a commitment to shareholder value[3](index=3&type=chunk)[5](index=5&type=chunk) - Loan growth accelerated after **five consecutive quarters of contraction**, with a strong pipeline for the second half of the year[4](index=4&type=chunk) - Reported earnings fell short of expectations primarily due to the timing of loan growth, which occurred late in the quarter, resulting in provisioning without corresponding interest income[6](index=6&type=chunk) Second Quarter 2025 Key Highlights [Operating Performance & Leverage](index=2&type=section&id=Operating%20Performance%20%26%20Leverage) The company achieved positive operating leverage driven by cost stabilization and a 13.4% increase in noninterest income - Positive operating leverage was driven by cost stabilization[8](index=8&type=chunk) Noninterest Income & Expense (QoQ) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :----- | :------ | :------ | :----------- | | Total Noninterest Income | $7.9 million | $7.0 million | +13.4% (+$0.9 million) | | Total Noninterest Expense | $28.6 million | $28.7 million | -0.5% (-$0.1 million) | - The increase in noninterest income was primarily due to an increase in equity method investment income from the mortgage segment, partially offset by declines in other income categories[8](index=8&type=chunk) - Noninterest expense remained relatively flat, consistent with recently-instituted cost control initiatives[8](index=8&type=chunk) [Net Interest Margin & Earning Assets](index=2&type=section&id=Net%20Interest%20Margin%20%26%20Earning%20Assets) Net interest margin expanded by three basis points to 3.69% on a fully tax-equivalent basis, driven by an improved earning asset mix Net Interest Margin & Earning Assets (QoQ) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :----- | :------ | :------ | :----------- | | Net Interest Margin (FTE) | 3.69% | 3.66% | +3 bps | | Average Earning Assets | $2.82 billion | $2.97 billion | -5.2% (-$155.0 million) | | Yield on Interest Earning Assets | 6.04% | 5.91% | +13 bps | | Total Cost of Funds | 2.41% | 2.28% | +13 bps | - Net interest margin expansion was powered by an improved earning asset mix and higher yields[8](index=8&type=chunk) - The decline in average earning assets primarily reflected seasonal considerations related to banking-as-a-service operations, resulting in a significant decline in average cash balances[8](index=8&type=chunk) - The increase in total cost of funds primarily reflected seasonal considerations, which resulted in a change in deposit mix and a lower balance of average noninterest bearing deposits[8](index=8&type=chunk) [Loan & Deposit Growth](index=2&type=section&id=Loan%20%26%20Deposit%20Growth) Total loan balances increased by 4.4% and total deposits grew by 8.5% quarter-over-quarter, with noninterest-bearing deposits representing 37.4% of total deposits Loan & Deposit Growth (QoQ) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :----- | :------ | :------ | :----------- | | Total Loan Balances | $2.15 billion | $2.06 billion | +4.4% (+$90.0 million) | | Total Deposits | $2.80 billion | $2.58 billion | +8.5% (+$220.6 million) | | Noninterest-Bearing (NIB) Deposits | $1.05 billion | $1.03 billion | +1.7% (+$17.0 million) | | NIB Deposits as % of Total Deposits | 37.4% | 40.0% | -2.6 percentage points | | Loan-to-Deposit Ratio | 76.8% | 79.9% | -3.1 percentage points | - Loan growth was primarily due to increased loan demand and improved market conditions[8](index=8&type=chunk) [Capital & Asset Quality](index=3&type=section&id=Capital%20%26%20Asset%20Quality%20(Highlights)) The company maintained a strong capital foundation with improved asset quality, evidenced by a decline in criticized loans and lower net charge-offs - The company is maintaining a strong and resilient foundation[11](index=11&type=chunk) Asset Quality Metrics (QoQ) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :----- | :------ | :------ | :----------- | | Criticized Loans | $112.9 million | $135.5 million | -16.6% (-$22.5 million) | | Criticized Loans as % of Total Loans | 5.2% | 6.6% | -1.4 percentage points | | Net Charge-offs (annualized) | $0.2 million (0.04%) | $0.9 million (0.2%) | -77.8% (-$0.7 million) | | Provision for Credit Losses | $2.0 million | $0.2 million | +$1.8 million | | Allowance for Credit Losses as % of Total Loans | 1.0% | 0.9% | +0.1 percentage points | Capital Ratios (QoQ) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :----- | :------ | :------ | :----------- | | Community Bank Leverage Ratio | 11.4% | 10.9% | +0.5 percentage points | | Tier 1 Risk-Based Capital Ratio | 14.6% | 15.5% | -0.9 percentage points | | Total Risk-Based Capital Ratio | 15.5% | 16.4% | -0.9 percentage points | | Tangible Common Equity Ratio (non-GAAP) | 9.3% | 10.2% | -0.9 percentage points | - The increase in provision for credit losses was primarily attributable to loan growth[11](index=11&type=chunk) [Shareholder Value Initiatives](index=1&type=section&id=Shareholder%20Value%20Initiatives%20(Highlights)) The company actively repurchased shares under a $10 million authorization, reflecting its ongoing commitment to shareholder value - The company actively repurchased stock following the authorization of a **$10 million share repurchase plan** in late May[5](index=5&type=chunk) Share Repurchase Activity (Q2 2025) | Metric | Value | | :----- | :---- | | Shares Repurchased | 314,580 | | Total Cost | $6.4 million | | Average Cost per Share | $20.28 | Income Statement Analysis [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Net interest income declined due to lower average earning assets, partially offset by a higher net interest margin Net Interest Income (FTE) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----- | :------ | :------ | :------ | :----------- | :----------- | | Net Interest Income (FTE) | $26.0 million | $26.9 million | $27.7 million | -3.4% (-$0.9 million) | -6.4% (-$1.8 million) | - The decline from both prior periods reflects a lower balance of total average earning assets, partially offset by a higher net interest margin[9](index=9&type=chunk) Interest Income & Expense | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----- | :------ | :------ | :------ | :----------- | :----------- | | Interest Income | $42,384 | $43,229 | $46,127 | -2.0% (-$0.8 million) | -8.1% (-$3.7 million) | | Interest Expense | $16,604 | $16,553 | $18,557 | +0.3% (+$0.1 million) | -10.5% (-$2.0 million) | | Cost of Funds | 2.41% | 2.28% | 2.54% | +13 bps | -13 bps | - The QoQ decline in interest income reflects declines in interest income from cash balances, while the YoY decline reflects lower interest income from loans and cash[10](index=10&type=chunk)[12](index=12&type=chunk) - The higher cost of funds QoQ reflects a shift in the mix of average deposits due to typical seasonal considerations related to banking-as-a-service operations[13](index=13&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income increased significantly, driven by higher equity method investment income from the mortgage segment Total Noninterest Income | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----- | :------ | :------ | :------ | :----------- | :----------- | | Total Noninterest Income | $7.9 million | $7.0 million | $7.1 million | +$0.9 million | +$0.8 million | - The QoQ increase is primarily attributable to a **$1.7 million increase in equity method investment income** from the mortgage segment, partially offset by declines in other income categories[14](index=14&type=chunk) - The YoY increase was primarily driven by a **$1.8 million increase in equity method investment income** from the mortgage segment, partially offset by a decline in compliance consulting income[14](index=14&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Total noninterest expense saw a slight decline quarter-over-quarter and year-over-year, reflecting cost control initiatives Total Noninterest Expense | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----- | :------ | :------ | :------ | :----------- | :----------- | | Total Noninterest Expense | $28.6 million | $28.7 million | $28.9 million | -$0.1 million | -$0.4 million | - The QoQ decline primarily reflects a **$0.6 million decrease in salaries and employee benefits**, partially offset by increases in other expense categories[16](index=16&type=chunk) - The YoY decline primarily reflects a **$1.7 million decrease in professional fees**, partially offset by increases in other operating expenses[16](index=16&type=chunk) Balance Sheet Analysis [Loans](index=5&type=section&id=Loans) Total loans increased by 4.4% quarter-over-quarter due to stronger demand, but declined by 2.4% year-over-year due to portfolio management Total Loans | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change (QoQ) | Change (YoY) | | :----- | :------------ | :------------- | :------------ | :----------- | :----------- | | Total Loans | $2.15 billion | $2.06 billion | $2.21 billion | +4.4% (+$90.0 million) | -2.4% (-$53.5 million) | - The increase in loan balances relative to the prior quarter primarily reflects stronger loan demand and improved market conditions[17](index=17&type=chunk) - The decline relative to the same period a year ago reflects portfolio management and the impact of loan amortization and payoffs[17](index=17&type=chunk) [Deposits](index=5&type=section&id=Deposits) Total deposits grew 8.5% QoQ driven by the Fintech space, while noninterest-bearing deposits also increased Total Deposits | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change (QoQ) | Change (YoY) | | :----- | :------------ | :------------- | :------------ | :----------- | :----------- | | Total Deposits | $2.80 billion | $2.58 billion | $2.88 billion | +8.5% (+$220.6 million) | -2.7% (-$78.4 million) | | Noninterest-Bearing (NIB) Deposits | $1.05 billion | $1.03 billion | $0.98 billion | +1.7% (+$17.0 million) | +6.7% (+$66.3 million) | | NIB Deposits as % of Total Deposits | 37.4% | 40.0% | 34.1% | -2.6 percentage points | +3.3 percentage points | - The increase in deposits relative to the prior quarter primarily reflects an increased volume in the Fintech banking space[18](index=18&type=chunk) - Relative to the same period a year ago, the decline in total deposits primarily reflects a **$193.1 million decline in brokered certificates of deposit**[18](index=18&type=chunk) [Off-Balance Sheet Deposits](index=5&type=section&id=Off-Balance%20Sheet%20Deposits) Off-balance sheet deposits declined significantly both quarter-over-quarter and year-over-year, primarily due to seasonal factors and lower deposit balances Off-Balance Sheet Deposits | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change (QoQ) | Change (YoY) | | :----- | :------------ | :------------- | :------------ | :----------- | :----------- | | Off-Balance Sheet Deposits | $1.11 billion | $1.52 billion | $1.36 billion | -27.5% (-$418.4 million) | -18.7% (-$253.4 million) | - The decline in off-balance sheet deposits relative to the prior quarter primarily reflects typical seasonality in certain deposit relationships[20](index=20&type=chunk) - Off-balance sheet deposit networks are utilized to generate fee income, enhance capital efficiency and manage liquidity and concentration risk[20](index=20&type=chunk) Capital Management [Capital Ratios](index=6&type=section&id=Capital%20Ratios) MVB maintained strong capital ratios, with the Community Bank Leverage Ratio increasing both quarter-over-quarter and year-over-year Capital Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change (QoQ) | Change (YoY) | | :----- | :------------ | :------------- | :------------ | :----------- | :----------- | | Community Bank Leverage Ratio | 11.4% | 10.9% | 10.7% | +0.5 pp | +0.7 pp | | Tier 1 Risk-Based Capital Ratio | 14.6% | 15.5% | 14.6% | -0.9 pp | 0.0 pp | | Total Risk-Based Capital Ratio | 15.5% | 16.4% | 15.4% | -0.9 pp | +0.1 pp | | Tangible Common Equity Ratio (non-GAAP) | 9.3% | 10.2% | 8.9% | -0.9 pp | +0.4 pp | [Dividends & Share Repurchases](index=6&type=section&id=Dividends%20%26%20Share%20Repurchases) The company maintained its quarterly cash dividend and continued its share repurchase program, buying back 314,580 shares for $6.4 million Shareholder Returns | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Quarterly Cash Dividend per Share | $0.17 | $0.17 | $0.17 | Share Repurchase Activity (Q2 2025) | Metric | Value | | :----- | :---- | | Shares Repurchased | 314,580 | | Total Cost | $6.4 million | | Average Cost per Share | $20.28 | | Authorized Program | Up to $10 million | Asset Quality Review [Loan Quality Metrics](index=6&type=section&id=Loan%20Quality%20Metrics) Nonperforming loans remained stable at 1.0% of total loans, while criticized loans significantly declined quarter-over-quarter due to payoffs and upgrades Loan Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Change (QoQ) | Change (YoY) | | :----- | :------------ | :------------- | :------------ | :----------- | :----------- | | Nonperforming Loans | $21.1 million | $20.3 million | $23.1 million | +$0.8 million | -$2.0 million | | Nonperforming Loans as % of Total Loans | 1.0% | 1.0% | 1.0% | 0.0 pp | 0.0 pp | | Criticized Loans | $112.9 million | $135.5 million | $125.8 million | -$22.5 million | -$12.9 million | | Criticized Loans as % of Total Loans | 5.2% | 6.6% | 5.7% | -1.4 pp | -0.5 pp | | Classified Loans as % of Total Loans | 3.0% | 3.2% | 2.2% | -0.2 pp | +0.8 pp | | Net Charge-offs (annualized) | $0.2 million (0.04%) | $0.9 million (0.2%) | $0.9 million (0.2%) | -$0.7 million | -$0.7 million | - The decline in criticized loans from the prior periods primarily reflects two commercial loans that were paid off and risk grade upgrades on certain loans[24](index=24&type=chunk) [Provision for Credit Losses](index=6&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses increased significantly quarter-over-quarter, primarily driven by the growth in total loans Provision for Credit Losses & ACL | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----- | :------ | :------ | :------ | :----------- | :----------- | | Provision for Credit Losses | $2.0 million | $0.2 million | $0.3 million | +$1.8 million | +$1.7 million | | Allowance for Credit Losses as % of Total Loans | 1.0% | 0.9% | 1.0% | +0.1 pp | 0.0 pp | - The **$2.0 million provision for credit losses** recorded during the quarter was primarily due to an increase in total loans[26](index=26&type=chunk) Company Information [About MVB Financial Corp.](index=7&type=section&id=About%20MVB%20Financial%20Corp.) MVB Financial Corp. is a publicly traded financial holding company providing services through its subsidiary MVB Bank in the Mid-Atlantic region and beyond - MVB Financial, the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® under the ticker **'MVBF'**[27](index=27&type=chunk) - Headquartered in Fairmont, West Virginia, MVB Financial provides financial services to individuals and corporate clients through MVB Bank and its subsidiaries[27](index=27&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to various risks and uncertainties, and investors are cautioned not to place undue reliance on them - Forward-looking statements are subject to risks including market, economic, operational, liquidity and credit risk, changes in interest rates, and government regulation[30](index=30&type=chunk) - The Company disclaims any obligation to update, revise or correct any forward-looking statements, except as required by law[31](index=31&type=chunk) [Non-U.S. GAAP Financial Measures](index=9&type=section&id=Non-U.S.%20GAAP%20Financial%20Measures) The document includes supplemental non-U.S. GAAP financial information which management uses for performance analysis and to assist investors - This document contains supplemental financial information determined by methods other than in accordance with U.S. GAAP[33](index=33&type=chunk) - These measures should not be considered a substitute for U.S. GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with U.S. GAAP[33](index=33&type=chunk) - Management believes the presentation of non-U.S. GAAP financial measures provides useful supplemental information that is essential to a proper understanding of the Company's financial condition[33](index=33&type=chunk) Consolidated Financial Statements [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) Net income was $2.0 million for Q2 2025, a decrease from prior periods due to a higher provision for credit losses and lower net interest income Consolidated Statements of Income (Unaudited, Dollars in thousands, except per share data) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Interest income | $42,384 | $43,229 | $46,127 | $85,613 | $96,157 | | Interest expense | $16,604 | $16,553 | $18,557 | $33,157 | $38,448 | | Net interest income | $25,780 | $26,676 | $27,570 | $52,456 | $57,709 | | Provision for credit losses | $1,990 | $177 | $254 | $2,167 | $2,251 | | Total noninterest income | $7,945 | $7,008 | $7,142 | $14,953 | $14,976 | | Total noninterest expenses | $28,569 | $28,701 | $28,930 | $57,270 | $59,121 | | Income before income taxes | $3,166 | $4,806 | $5,528 | $7,972 | $11,313 | | Net income available to common shareholders | $2,002 | $3,577 | $4,089 | $5,579 | $8,571 | | Earnings per share - basic | $0.16 | $0.28 | $0.32 | $0.43 | $0.67 | | Earnings per share - diluted | $0.15 | $0.27 | $0.31 | $0.42 | $0.66 | [Noninterest Income Details](index=11&type=section&id=Noninterest%20Income%20Details) A detailed breakdown of noninterest income shows a significant increase in equity method investments income, partially offset by declines in other areas Noninterest Income Breakdown (Unaudited, Dollars in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Total payment card and service charge income | $4,653 | $4,985 | $3,817 | $9,638 | $8,630 | | Equity method investments income (loss) | $2,315 | $645 | $484 | $2,960 | -$644 | | Compliance and consulting income | $6 | $501 | $1,274 | $507 | $2,274 | | Gain on divestiture activity | $0 | $608 | $0 | $608 | $0 | | Loss on disposal of assets | -$15 | -$342 | -$12 | -$357 | -$66 | | Other noninterest income | $1,232 | $988 | $1,462 | $2,220 | $4,056 | | Total noninterest income | $7,945 | $7,008 | $7,142 | $14,953 | $14,976 | [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets were $3.22 billion as of June 30, 2025, an increase from the prior quarter, driven by growth in loans and deposits Condensed Consolidated Balance Sheets (Unaudited, Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Cash and cash equivalents | $399,379 | $251,450 | $455,517 | | Loans receivable, net | $2,132,524 | $2,044,131 | $2,184,709 | | Total assets | $3,224,008 | $3,019,687 | $3,288,004 | | Noninterest-bearing deposits | $1,050,104 | $1,033,056 | $983,809 | | Interest-bearing deposits | $1,754,319 | $1,550,742 | $1,899,043 | | Total liabilities | $2,921,693 | $2,709,633 | $2,991,341 | | Total Stockholders' equity | $302,315 | $310,054 | $296,663 | [Average Balances and Interest Rates](index=13&type=section&id=Average%20Balances%20and%20Interest%20Rates) This section provides detailed average balances, interest income/expense, and yields/costs for assets and liabilities Average Balances and Interest Rates (Three Months Ended June 30, 2025, Unaudited, Dollars in thousands) | Metric | Average Balance | Interest Income/Expense | Yield/Cost | | :-------------------------------- | :-------------- | :---------------------- | :--------- | | Total earning assets | $2,824,946 | $42,561 | 6.04% | | Total loans | $2,090,946 | $35,322 | 6.78% | | Total interest-bearing liabilities | $1,877,341 | $16,604 | 3.55% | | Net interest spread (tax equivalent) | N/A | N/A | 2.49% | | Net interest income and margin (tax-equivalent) | N/A | $25,957 | 3.69% | Average Balances and Interest Rates (Six Months Ended June 30, 2025, Unaudited, Dollars in thousands) | Metric | Average Balance | Interest Income/Expense | Yield/Cost | | :-------------------------------- | :-------------- | :---------------------- | :--------- | | Total earning assets | $2,901,701 | $85,977 | 5.98% | | Total loans | $2,097,500 | $70,389 | 6.77% | | Total interest-bearing liabilities | $1,863,619 | $33,157 | 3.59% | | Net interest spread (tax-equivalent) | N/A | N/A | 2.39% | | Net interest income and margin (tax-equivalent) | N/A | $52,820 | 3.67% | [Selected Financial Data](index=16&type=section&id=Selected%20Financial%20Data) This section provides a summary of key financial and performance ratios for quarterly and year-to-date periods Selected Financial Data (Unaudited, Dollars in thousands, except share and per share data) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------ | :------- | :------- | | Net income | $2,002 | $3,577 | $4,089 | $5,579 | $8,571 | | Earnings per share - basic | $0.16 | $0.28 | $0.32 | $0.43 | $0.67 | | Cash dividends paid per common share | $0.17 | $0.17 | $0.17 | $0.34 | $0.34 | | Book value per common share | $23.78 | $23.94 | $22.94 | $23.78 | $22.94 | | Tangible book value per common share (non-GAAP) | $23.68 | $23.85 | $22.70 | $23.68 | $22.70 | | Return on average assets | 0.3% | 0.4% | 0.5% | 0.3% | 0.5% | | Return on average equity | 2.6% | 4.7% | 5.7% | 3.7% | 5.9% | | Net interest margin (FTE) | 3.69% | 3.66% | 3.75% | 3.67% | 3.79% | | Efficiency ratio (non-GAAP) | 84.7% | 85.2% | 83.3% | 85.0% | 81.3% | | Nonperforming loans to total loans | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% | | Allowance for credit losses to total loans | 0.97% | 0.93% | 1.00% | 0.97% | 1.00% | Mortgage Company Equity Method Investees Production Data (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------ | :------- | :------- | | Mortgage pipeline | $1,128,738 | $1,078,835 | $927,875 | $1,128,738 | $927,875 | | Loans originated | $1,352,603 | $1,310,702 | $1,383,405 | $2,663,305 | $2,433,494 | | Loans closed | $882,361 | $888,022 | $828,849 | $1,770,383 | $1,482,155 | | Loans sold | $699,036 | $644,683 | $639,035 | $1,343,718 | $1,555,150 | [Non-U.S. GAAP Reconciliations](index=17&type=section&id=Non-U.S.%20GAAP%20Reconciliations) This section provides reconciliations for non-U.S. GAAP financial measures to their most directly comparable U.S. GAAP measures Net Interest Income and Net Interest Margin on a Fully Tax-Equivalent Basis Reconciliation (Dollars in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | YTD June 30, 2025 | YTD June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | :---------------- | :---------------- | | Net interest income (U.S. GAAP) | $25,780 | $26,676 | $27,570 | $52,456 | $57,709 | | Net interest margin (U.S. GAAP) | 3.66% | 3.63% | 3.73% | 3.65% | 3.77% | | Impact of fully tax-equivalent adjustment | 177 | 186 | 151 | 364 | 345 | | Net interest income on a fully tax equivalent basis | $25,957 | $26,862 | $27,721 | $52,820 | $58,054 | | Net interest margin on a fully tax equivalent basis | 3.69% | 3.66% | 3.75% | 3.67% | 3.79% | Tangible Book Value per Common Share and Tangible Common Equity Ratio Reconciliation (Unaudited, Dollars in thousands, except per share data) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total equity attributable to parent | $302,315 | $310,054 | $296,625 | | Less: Total intangibles | -$1,200 | -$1,200 | -$3,145 | | Tangible common equity | $301,115 | $308,854 | $293,480 | | Common shares outstanding (000s) | 12,715 | 12,950 | 12,928 | | Tangible book value per common share | $23.68 | $23.85 | $22.70 | | Total assets | $3,224,008 | $3,019,687 | $3,288,004 | | Less: Total intangibles | -$1,200 | -$1,200 | -$3,145 | | Tangible assets | $3,222,808 | $3,018,487 | $3,284,859 | | Tangible common equity ratio | 9.3% | 10.2% | 8.9% |

Core Viewpoint - MVB Financial (MVBF) is expected to report flat earnings of $0.31 per share for the quarter ended June 2025, with revenues projected at $35.9 million, reflecting a 3.4% increase from the previous year [3][12]. Earnings Expectations - The consensus outlook indicates that MVB Financial's earnings will remain unchanged compared to the same quarter last year, which may influence the stock price depending on actual results versus expectations [1][3]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has not changed in the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [9][10]. - MVB Financial currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, MVB Financial exceeded expectations by delivering earnings of $0.27 per share against an expected $0.21, resulting in a surprise of +28.57% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - MVB Financial does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but investors should consider other factors before making decisions [17].

Financial Data and Key Metrics Changes - The company reported a significant turnaround from headwinds in 2023 to tailwinds in 2024, highlighted by a recent share buyback announcement [13] - The payment revenue has shown a remarkable growth with a compound annual growth rate (CAGR) of 123% from 2023 to 2024 [15] - The overall deposit base has increased by 31% off balance sheet, indicating a positive trajectory for the company's franchise value [16] Business Line Data and Key Metrics Changes - The fintech banking segment has experienced a gross deposit CAGR of 29% and gross fees CAGR of 86%, despite a slight decline in 2024 due to exiting the digital space [18] - The gaming vertical holds an impressive 84% market share, contributing to the company's growth strategy [14] Market Data and Key Metrics Changes - The company has nearly $500 million in gaming deposits, showcasing its strong position in the gaming market [15] - The overall market for the products and services offered by the company has markedly improved in recent months, creating a favorable environment for growth [21] Company Strategy and Development Direction - The company's strategy focuses on being trusted partners on the financial frontier, emphasizing values such as respect, commitment, and teamwork [14] - The growth vehicles identified include software as a service, banking as a service, and a strong emphasis on payments, which is rapidly growing [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that the climate and market conditions for their products and services have improved significantly [21] - The company aims to maintain strong asset quality and capital ratios, positioning itself for future growth [19] Other Important Information - The company has appointed two new directors to the board, which is expected to enhance its governance and strategic direction [2][8] - The meeting included discussions on executive compensation and the appointment of an independent registered public accounting firm for 2025 [10][11] Q&A Session Summary - No specific questions were recorded during the Q&A session, indicating a smooth approval process for the proposals presented [11]

Core Viewpoint - MVB Financial Corp. has authorized a stock repurchase program of up to $10 million, which has positively impacted its share price, increasing by 3.2% following the announcement [1]. Group 1: Stock Repurchase Program - The stock repurchase program will be executed through open-market transactions, block transactions, and privately negotiated deals, adhering to SEC regulations [2]. - The timing and number of shares repurchased will depend on various factors including price, trading volume, and market conditions [2]. Group 2: Capital Distribution Activities - MVB Financial has consistently raised dividends, increasing them five times in the last five years, with the latest hike being 13.3% to 17 cents per share [3]. - The current dividend yield stands at 3.59%, based on the last closing price of $18.95 [3]. Group 3: Financial Position - As of March 31, 2025, MVB Financial reported cash and cash equivalents of $251 million and long-term debt of $74 million, indicating a strong liquidity position [4]. - The CEO emphasized that the company's strong capital position enables the execution of the stock repurchase program, enhancing shareholder value [5]. Group 4: Market Performance - Over the past three months, MVBF shares have increased by 0.6%, while the industry has seen a growth of 5.8% [6]. - Currently, the company holds a Zacks Rank of 3 (Hold) [7].