MVB Financial Corp. Announces Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

MVB Financial Corp. (NASDAQ: MVBF) reported Q4 2024 net income of $9.4 million, or $0.73 basic and $0.72 diluted earnings per share, marking a $7.4 million increase from the previous quarter. Total noninterest income rose by $14.6 million to $21.3 million, primarily due to an $11.8 million gain from a sale-leaseback transaction.

The company's financial position showed mixed results with noninterest bearing deposits representing 34.9% of total deposits. Loans totaled $2.10 billion, declining 3.3% from Q3 2024, while deposits decreased 10.3% to $2.69 billion. The Community Bank Leverage Ratio improved to 11.2%, and tangible book value per share increased 0.7% to $23.37.

Notable appointments include Jeffrey Weidley as Chief Deposit Officer and Joe Rodriguez as Chief Risk Officer, supporting MVB's strategic focus on payments and long-term growth initiatives.

Positive

• Net income increased by $7.4 million from previous quarter
• Noninterest income grew by $14.6 million (219.7%) to $21.3 million
• Community Bank Leverage Ratio improved to 11.2% from 10.9%
• Nonperforming loans declined by $3.9 million (13.8%) to $24.6 million

Negative

• Net interest income declined by $1.7 million (6.3%) from Q3 2024
• Loans decreased by $71.1 million (3.3%) from previous quarter
• Deposits fell by $308.0 million (10.3%) from Q3 2024
• Criticized loans increased to 6.2% of total loans from 5.7% in Q3 2024

Insights

Financial Analyst

MVB Financial's Q4 2024 results present a complex picture of a bank in strategic transition. The headline $9.4 million net income appears strong but requires careful analysis as it's primarily driven by an $11.8 million one-time gain from a sale-leaseback transaction, masking underlying operational challenges.

Core banking metrics signal pressure points:

• Net interest income declined 6.3% quarter-over-quarter, with NIM compression to 3.46%
• Loan portfolio contracted 3.3% QoQ to $2.10 billion
• Deposits decreased 10.3% QoQ to $2.69 billion

The bank's funding profile remains a key strength, with noninterest-bearing deposits comprising 34.9% of total deposits. This favorable deposit mix provides important cost advantages in the current high-rate environment. The strategic decision to utilize off-balance sheet deposit networks demonstrates a sophisticated approach to capital efficiency and concentration risk management.

Asset quality metrics warrant attention:

• Criticized loans increased to 6.2% of total loans
• A $13.5 million multifamily construction loan entering nonperforming status
• Net charge-offs increased to 0.3% of total loans

The appointment of Jeffrey Weidley as Chief Deposit Officer and Joe Rodriguez as Chief Risk Officer signals a strategic pivot toward strengthening core banking operations and risk management. The announced sale of Trabian Technology in January 2025 further indicates a focus on streamlining operations.

The subsidiary Victor Technologies shows promising revenue growth, potentially offering a differentiated fintech angle to the traditional banking model. This, combined with the bank's payments focus, suggests a hybrid strategy that could create competitive advantages in the evolving financial services landscape.

FAIRMONT, W.Va.--(BUSINESS WIRE)-- MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB” or the “Company”), the holding company for MVB Bank, Inc. ("MVB Bank"), today announced financial results for the fourth quarter and year ended December 31, 2024, with reported net income of $9.4 million, or $0.73 basic and $0.72 diluted earnings per share for the three months ended December 31, 2024.

Fourth Quarter 2024 Highlights

Net income was $9.4 million, an increase of $7.4 million from prior quarter.

Noninterest bearing deposits represent 34.9% of total deposits.

Tangible book value per share of $23.37, up 0.7% from the prior quarter.

Capital strength further enhanced.

MVB names Jeffrey Weidley as Chief Deposit Officer and Joe Rodriguez as Chief Risk Officer.

From Larry F. Mazza, Chief Executive Officer, MVB Financial:

“While the fourth quarter presented financial challenges, MVB continued to adapt and narrow our strategic focus, positioning the company for long-term success. The fourth quarter marked the end of a pivotal transition year, during which we simplified our growth strategy and strengthened our team to make meaningful investments in the future. Recent key leadership appointments have been made to help support this shift. In mid-November, risk management industry veteran Joe Rodriguez, formerly of Capital One, joined as Chief Risk Officer, bringing a wealth of experience in transforming risk management into a key business driver. After year-end, we appointed Jeffrey Weidley as Chief Deposit Officer. A seasoned banker in the DC metro area, Jeffrey will oversee strategies to grow MVB’s deposit base.

“Looking ahead, I’m encouraged by the continued evolution of our business model and our strong foundation, which includes a best-in-class core funding profile, a strong liquidity position, capital management strength and stable asset quality. Our laser focus on payments continues to drive meaningful progress, as we deliver innovative solutions to support our existing clients and grow revenue. With loan pipelines building and a renewed sense of optimism across the broader economy, MVB is well-positioned to adapt to future opportunities and create long-term value for our clients and stakeholders.”

FOURTH QUARTER 2024 HIGHLIGHTS

• Noninterest income higher on gain on sale of assets and higher revenue from Victor subsidiary; expenses higher due primarily to higher personnel costs.
  • Total noninterest income increased $14.6 million, or 219.7%, relative to the prior quarter, to $21.3 million. The increase is primarily attributable to the $11.8 million gain on sale of assets associated with the previously disclosed sale-leaseback transaction, an increase of $1.2 million in other operating income, driven by net deposit network fee income and revenue from our subsidiary Victor Technologies, Inc. (“Victor”), and a $1.0 million increase in gain on sale of loans.
  • Noninterest expense increased $4.1 million, or 14.0%, relative to the prior quarter, to $33.6 million. The increase is primarily due to employee benefits costs and incentive compensation, as well as higher professional fees driven by incremental internal audit and legal fees. Additionally, other operating expenses increased reflecting higher correspondent banking fees driven by transaction volume.
• Measures of foundational strength were further enhanced.
  • The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 11.2%, 15.1%, and 15.8%, respectively, compared to 10.9%, 14.9%, and 15.7%, respectively, at the prior quarter-end.
  • The tangible common equity ratio, a non-U.S. GAAP financial measure, was 9.7% as of December 31, 2024, up from 8.8% as of September 30, 2024.
  • Book value per share and tangible book value per share, a non-U.S. GAAP measure, were $23.61 and $23.37, respectively, which both represent increases of 0.7% relative to the prior quarter-end.
  • Nonperforming loans declined $3.9 million, or 13.8%, to $24.6 million, or 1.2% of total loans, from $28.6 million, or 1.3% of total loans, at the prior quarter-end. Criticized loans totaled $130.5 million, or 6.2% of total loans, as compared to $124.2 million, or 5.7% of total loans, at the prior quarter-end.
  • Provision for credit losses totaled $0.3 million, down from $1.0 million for the prior quarter as a result of lower loan balances. Allowance for credit losses was 0.9% of total loans at December 31, 2024, as compared to 1.0% at the prior quarter-end.

INCOME STATEMENT

Net interest income on a tax-equivalent basis totaled $25.1 million for the fourth quarter of 2024, a decline of $1.7 million, or 6.3%, from the third quarter of 2024 and $6.2 million, or 19.8%, from the fourth quarter of 2023. The decline in the fourth quarter of 2024 compared to the prior periods was driven by a decline in the net interest margin and lower average earning asset balances.

Interest income declined $3.6 million, or 7.7%, from the third quarter of 2024 and $6.6 million, or 13.4%, from the fourth quarter of 2023. The decline from the third quarter of 2024 reflects lower loan balances and the impact of lower interest rates on interest income from loans and cash balances. The decline from the fourth quarter of 2023 reflects a decline in cash balances, largely driven by the exit of digital asset program accounts, a decline in loan balances and the impact of lower interest rates on interest income from loans and cash balances.

Interest expense declined $1.9 million, or 9.4%, compared to the third quarter of 2024 and $0.4 million, or 2.4%, compared to the fourth quarter of 2023. The cost of funds was 2.56% for the fourth quarter of 2024, down 21 basis points compared to the third quarter of 2024 and up 12 basis points compared to the fourth quarter of 2023. The decline in the cost of funds compared to the prior quarter reflects lower brokered deposits. Additionally, the current quarter cost of funds reflected $0.2 million of termination costs related to the Company’s decision to call a brokered certificate of deposit (“CD”) during the fourth quarter of 2024, while the prior quarter reflected termination costs of $0.3 million associated with two brokered CDs that were called during the third quarter of 2024. Relative to the year-ago period, the increase in the cost of funds reflects the impact of higher interest rates on our deposits, a shift in the mix of average deposits and the exit of the digital asset program account relationships.

On a fully tax-equivalent basis, net interest margin for the fourth quarter of 2024 was 3.46%, a decline of 15 basis points from the third quarter of 2024 and 60 basis points from the fourth quarter of 2023. See the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. Contraction in the net interest margin from the third quarter of 2024 primarily reflected lower loan balances, partially offset by lower funding costs. Contraction in the net interest margin from the fourth quarter of 2023 primarily reflected higher funding costs and an unfavorable shift in the mix of deposit funding, partially offset by higher earning asset yields.

Noninterest income totaled $21.3 million for the fourth quarter of 2024, an increase of $14.6 million, or 219.7%, from the third quarter of 2024 and $16.8 million, or 379.5%, from the fourth quarter of 2023. The increase compared to the third quarter of 2024 was primarily driven by the $11.8 million gain on sale of assets associated with the sale-leaseback transaction and increases of $1.2 million in other operating income, driven by revenue from our subsidiary Victor, and $1.0 million in gain on sale of loans. The increase in noninterest income from the fourth quarter of 2023 was primarily driven by the $11.8 million gain on sale of assets associated with the sale-leaseback transaction and $1.3 million in equity method investment income from our mortgage companies, compared to a $2.4 million loss in equity method investment income from our mortgage segment in the prior year period.

Noninterest expense totaled $33.6 million for the fourth quarter of 2024, an increase of $4.1 million, or 14.0%, from the third quarter of 2024 and $5.3 million, or 18.8%, from the fourth quarter of 2023. The increase from the third quarter of 2024 was driven by increases of $2.1 million in employee benefits and incentive compensation, $1.1 million in professional fees, driven by incremental internal audit and legal fees, and $0.9 million in other operating expense, driven by higher correspondent banking fees as transaction volume increased. The increase from the fourth quarter of 2023 primarily reflected increases of $3.9 million in employee benefits and incentive compensation, $0.8 million in other operating expense and $0.5 million in travel, entertainment, dues and subscriptions.

BALANCE SHEET

Loans totaled $2.10 billion at December 31, 2024, a decline of $71.1 million, or 3.3%, as compared to September 30, 2024 and $217.5 million, or 9.4%, as compared to December 31, 2023. The decline in loan balances relative to the prior quarters primarily reflects loan sales, slower loan growth based on overall market conditions and the impact of loan amortization and payoffs.

Deposits totaled $2.69 billion as of December 31, 2024, a decline of $308.0 million, or 10.3%, from September 30, 2024 and $207.9 million, or 7.2%, from December 31, 2023. NIB deposits totaled $941.0 million as of December 31, 2024, a decline of $48.2 million, or 4.9%, from September 30, 2024 and $256.3 million, or 21.4%, from December 31, 2023. The decline in deposit balances relative to the prior quarters primarily reflects the utilization of off-balance sheet deposit networks to generate fee income, enhance capital efficiency and manage liquidity and concentration risk. Relative to the prior year period, the decline in deposit balances also reflects the exit of digital asset program accounts.

In January 2025, the Bank sold its interest in Trabian Technology, Inc (“Trabian”). As a result, the related assets and liabilities of Trabian are shown as held-for-sale on the condensed consolidated balance sheet.

CAPITAL

The Community Bank Leverage Ratio was 11.2% as of December 31, 2024, compared to 10.9% as of September 30, 2024 and 10.5% as of December 31, 2023. MVB’s Tier 1 Risk-Based Capital Ratio was 15.1% as of December 31, 2024, compared to 14.9% as of September 30, 2024 and 14.4% as of December 31, 2023. The Bank’s Total Risk-Based Capital Ratio was 15.8% as of December 31, 2024, compared to 15.7% as of September 30, 2024 and 15.1% as of December 31, 2023.

The Company issued a quarterly cash dividend of $0.17 per share for the quarter ended December 31, 2024, consistent with the quarters ended September 30, 2024 and December 31, 2023.

ASSET QUALITY

Nonperforming loans totaled $24.6 million, or 1.2% of total loans, as of the fourth quarter of 2024, as compared to $28.6 million, or 1.3% of total loans as of the third quarter of 2024 and $8.3 million, or 0.4% of total loans as of the fourth quarter of 2023. The increase in nonperforming loans reflects the addition of a multifamily commercial construction loan with an outstanding balance of $13.5 million during the year. Criticized loans were $130.5 million, or 6.2% of total loans, as compared to $124.2 million, or 5.7% of total loans, as of the third quarter of 2024 and $122.4 million, or 5.3% of total loans, as of the fourth quarter of 2023.

Net charge-offs were $1.5 million, or 0.3% of total loans, for the fourth quarter of 2024, compared to $0.7 million, or 0.1% of total loans, for the third quarter of 2024 and $0.5 million, or 0.1% of total loans for the fourth quarter of 2023.

The provision for credit losses totaled $0.3 million for the quarter ended December 31, 2024, compared to $1.0 million for the quarter ended September 30, 2024 and a release of allowance of $2.1 million for the quarter ended December 31, 2023. The lower provision for credit losses for the quarter ended December 31, 2024 compared to September 30, 2024 reflected lower loan balances. The allowance for credit losses was 0.9% of total loans at December 31, 2024, as compared to 1.0% as of September 30, 2024 and 1.0% as of December 31, 2023.

About MVB Financial Corp.

MVB Financial, the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® (“Nasdaq”) under the ticker “MVBF.”

MVB is a financial holding company headquartered in Fairmont, West Virginia. Through its subsidiary, MVB Bank, and MVB Bank’s subsidiaries, MVB Financial provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond.

Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.

For more information about MVB, please visit ir.mvbbanking.com.

Forward-looking Statements

MVB Financial has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this press release that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and are subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,” “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues” or the negative of those terms or similar expressions. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity and credit risk; changes in market interest rates; impacts related to or resulting from recent turmoil in the banking industry; inability to successfully execute business plans, including strategies related to investments in Fintech companies; competition; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; changes in economic, business and political conditions; changes in demand for loan products and deposit flow; changes in deposit classifications; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise or correct any forward-looking statements.

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the SEC. Accordingly, the consolidated financial information in this announcement is subject to change.

Non-U.S. GAAP Financial Measures

This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management uses these non-U.S. GAAP measures in its analysis of the Company’s performance. 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. Management believes the presentation of non-U.S. GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company’s financial condition and results. Non-U.S. GAAP measures are not formally defined under U.S. GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to U.S. GAAP financial measures, our management believes these non-U.S. GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-U.S. GAAP measures. See the tables below for a reconciliation of these non-U.S. GAAP measures to the most directly comparable U.S. GAAP financial measures.

MVB Financial Corp.
Financial Highlights Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data)
		Quarterly											Year-to-Date
		2024			2024				2023				2024				2023
		Fourth Quarter			Third Quarter				Fourth Quarter
Interest income		$	43,058		$	46,627			$	49,699			$	185,842			$	189,818
Interest expense			18,154			20,042				18,592				76,644				66,535
Net interest income			24,904			26,585				31,107				109,198				123,283
Provision (release of allowance) for credit losses			331			959				(2,103	)			3,541				(1,921	)
Net interest income after provision (release of allowance) for credit losses			24,573			25,626				33,210				105,657				125,204
Total noninterest income			21,280			6,657				4,438				42,913				19,715
Noninterest expense:
Salaries and employee benefits			18,795			16,722				14,863				67,955				63,371
Other expense			14,825			12,763				13,438				54,271				54,254
Total noninterest expenses			33,620			29,485				28,301				122,226				117,625
Income before income taxes			12,233			2,798				9,347				26,344				27,294
Income taxes			2,795			642				1,431				6,099				5,070
Net income from continuing operations before noncontrolling interest			9,438			2,156				7,916				20,245				22,224
Income from discontinued operations before income taxes			—			—				—				—				11,831
Income taxes - discontinued operations			—			—				—				—				3,049
Net income from discontinued operations			—			—				—				—				8,782
Net income, before noncontrolling interest			9,438			2,156				7,916				20,245				31,006
Net (income) loss attributable to noncontrolling interest			2			(76	)			(5	)			(154	)			226
Net income available to common shareholders		$	9,440		$	2,080			$	7,911			$	20,091			$	31,232
Earnings per share from continuing operations - basic		$	0.73		$	0.16			$	0.62			$	1.56			$	1.77
Earnings per share from discontinued operations - basic		$	—		$	—			$	—			$	—			$	0.69
Earnings per share - basic		$	0.73		$	0.16			$	0.62			$	1.56			$	2.46
Earnings per share from continuing operations - diluted		$	0.72		$	0.16			$	0.61			$	1.53			$	1.72
Earnings per share from discontinued operations - diluted		$	—		$	—			$	—			$	—			$	0.68
Earnings per share - diluted		$	0.72		$	0.16			$	0.61			$	1.53			$	2.40

 

Noninterest Income (Unaudited) (Dollars in thousands)
		Quarterly											Year-to-Date
		2024			2024				2023				2024				2023
		Fourth Quarter			Third Quarter				Fourth Quarter
Card acquiring income		$	489		$	336			$	1,348			$	1,413			$	3,603
Service charges on deposits			859			1,088				174				4,573				2,850
Interchange income			2,470			2,428				2,289				10,314				7,323
Total payment card and service charge income			3,818			3,852				3,811				16,300				13,776
Equity method investments income (loss)			1,319			746				(2,429	)			1,421				(2,499	)
Compliance and consulting income			1,110			1,291				986				4,675				4,312
Gain (loss) on sale of loans			1,012			26				271				1,038				(744	)
Investment portfolio gains (losses)			721			498				75				1,945				(1,659	)
Loss on acquisition and divestiture activity			—			—				—				—				(986	)
Gain (loss) on sale of assets			11,771			(2	)			—				11,703				—
Other noninterest income			1,529			246				1,724				5,831				7,515
Total noninterest income		$	21,280		$	6,657			$	4,438			$	42,913			$	19,715

 

Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands)
		December 31, 2024				September 30, 2024				December 31, 2023
Cash and cash equivalents		$	317,913			$	610,911			$	398,229
Securities available-for-sale, at fair value			411,640				374,828				345,275
Equity securities			42,583				41,760				41,086
Loans held-for-sale			—				—				629
Loans receivable			2,100,131				2,171,272				2,317,594
Less: Allowance for credit losses			(19,663	)			(21,499	)			(22,124	)
Loans receivable, net			2,080,468				2,149,773				2,295,470
Premises and equipment, net			12,475				18,838				20,928
Assets held-for-sale			2,278				—				—
Other assets			261,347				222,646				212,265
Total assets		$	3,128,704			$	3,418,756			$	3,313,882
Noninterest-bearing deposits		$	940,994			$	989,144			$	1,197,272
Interest-bearing deposits			1,752,621				2,012,504				1,704,204
Senior term loan			—				—				6,786
Subordinated debt			73,787				73,725				73,540
Liabilities held-for-sale			720				—				—
Other liabilities			54,791				40,183				42,738
Stockholders' equity			305,791				303,200				289,342
Total liabilities and stockholders' equity		$	3,128,704			$	3,418,756			$	3,313,882

 

Average Balances and Interest Rates (Unaudited) (Dollars in thousands)
		Three Months Ended											Three Months Ended											Three Months Ended
		December 31, 2024											September 30, 2024											December 31, 2023
		Average Balance				Interest Income/ Expense				Yield/ Cost			Average Balance				Interest Income/ Expense				Yield/ Cost			Average Balance				Interest Income/ Expense				Yield/ Cost
Assets
Interest-bearing balances with banks		$	358,699			$	4,191			4.65	%		$	400,330			$	5,218			5.19	%		$	442,521			$	5,944			5.33	%
Investment securities:
Taxable			290,468				2,199			3.01				258,151				1,846			2.84				222,303				1,444			2.58
Tax-exempt 1			105,190				851			3.22				104,769				867			3.29				98,464				876			3.53
Loans and loans held-for-sale: 2
Commercial 3			1,504,730				28,727			7.59				1,553,666				31,136			7.97				1,635,510				33,665			8.17
Tax-exempt 1			2,939				32			4.33				3,129				34			4.32				3,492				38			4.32
Real estate			560,790				6,025			4.27				558,691				6,446			4.59				576,580				6,421			4.42
Consumer			64,700				1,219			7.50				68,337				1,269			7.39				76,088				1,503			7.84
Total loans			2,133,159				36,003			6.71				2,183,823				38,885			7.08				2,291,670				41,627			7.21
Total earning assets			2,887,516				43,244			5.96				2,947,073				46,816			6.32				3,054,958				49,891			6.48
Less: Allowance for credit losses			(21,542	)										(22,043	)										(24,079	)
Cash and due from banks			6,407											4,638											5,771
Other assets			284,294											284,640											292,574
Total assets		$	3,156,675										$	3,214,308										$	3,329,224
Liabilities
Deposits:
NOW		$	529,505			$	4,092			3.07	%		$	534,494			$	4,422			3.29	%		$	637,144			$	5,386			3.35	%
Money market checking			344,546				2,296			2.65				434,174				3,378			3.10				650,925				3,691			2.25
Savings			68,875				288			1.66				116,861				883			3.01				70,146				442			2.50
IRAs			8,085				92			4.53				8,164				91			4.43				7,296				66			3.59
CDs			834,668				10,561			5.03				800,986				10,440			5.19				590,517				8,014			5.38
Repurchase agreements and federal funds sold			3,904				21			2.14				3,589				19			2.11				4,736				—			—
FHLB and other borrowings			11				—			—				44				—			—				11				—			—
Senior term loan3			—				—			—				—				—			—				8,183				183			8.87
Subordinated debt			73,765				804			4.34				73,702				809			4.37				73,510				810			4.37
Total interest-bearing liabilities			1,863,359				18,154			3.88				1,972,014				20,042			4.04				2,042,468				18,592			3.61
Noninterest-bearing demand deposits			961,142											910,787											975,122
Other liabilities			35,055											37,591											39,410
Total liabilities			2,859,556											2,920,392											3,057,000
Stockholders’ equity
Common stock			13,785											13,776											13,588
Paid-in capital			163,986											163,189											160,106
Treasury stock			(16,741	)										(16,741	)										(16,741	)
Retained earnings			161,382											160,694											156,004
Accumulated other comprehensive loss			(25,416	)										(27,069	)										(40,688	)
Total stockholders’ equity attributable to parent			296,996											293,849											272,269
Noncontrolling interest			123											67											(45	)
Total stockholders’ equity			297,119											293,916											272,224
Total liabilities and stockholders’ equity		$	3,156,675										$	3,214,308										$	3,329,224
Net interest spread (tax-equivalent)										2.08	%										2.28	%										2.87	%
Net interest income and margin (tax-equivalent) 1						$	25,090			3.46	%						$	26,774			3.61	%						$	31,299			4.06	%
Less: Tax-equivalent adjustments						$	(186	)									$	(189	)									$	(193	)
Net interest spread										2.05	%										2.25	%										2.84	%
Net interest income and margin						$	24,904			3.43	%						$	26,585			3.59	%						$	31,107			4.04	%
1 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 13. 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. 3 The senior term loan was paid off in May 2024, and the unamortized debt issuance costs were recorded as interest expense upon the repayment.

		Twelve Months Ended											Twelve Months Ended
		December 31, 2024											December 31, 2023
		Average Balance				Interest Income/ Expense				Yield/ Cost			Average Balance				Interest Income/ Expense				Yield/ Cost
Assets
Interest-bearing balances with banks		$	422,165			$	21,814			5.17	%		$	414,466			$	21,043			5.08	%
Investment securities:
Taxable			261,986				7,693			2.94				221,395				5,576			2.52
Tax-exempt 1			104,765				3,287			3.14				116,680				4,347			3.73
Loans and loans held-for-sale: 2
Commercial			1,570,284				122,839			7.82				1,621,299				124,078			7.65
Tax-exempt 1			3,175				139			4.38				3,732				163			4.37
Real estate			564,633				25,474			4.51				591,157				24,764			4.19
Consumer			70,943				5,314			7.49				108,988				10,793			9.90
Total loans			2,209,035				153,766			6.96				2,325,176				159,798			6.87
Total earning assets			2,997,951				186,560			6.22				3,077,717				190,764			6.20
Less: Allowance for loan losses			(22,108	)										(29,746	)
Cash and due from banks			5,246											6,659
Other assets			302,304											302,036
Total assets		$	3,283,393										$	3,356,666
Liabilities
Deposits:
NOW		$	521,337			$	17,587			3.37	%		$	697,266			$	19,851			2.85	%
Money market checking			396,881				12,770			3.22				504,730				10,352			2.05
Savings			115,270				3,756			3.26				76,908				1,871			2.43
IRAs			7,990				338			4.23				6,662				194			2.91
CDs			760,714				38,654			5.08				576,726				29,392			5.10
Repurchase agreements and federal funds sold			3,477				44			1.27				5,662				1			0.02
FHLB and other borrowings			25				2			6.46				17,542				889			5.07
Senior term loan3			2,355				264			11.21				9,007				766			8.50
Subordinated debt			73,667				3,229			4.38				73,415				3,219			4.38
Total interest-bearing liabilities			1,881,716				76,644			4.07				1,967,918				66,535			3.38
Noninterest-bearing demand deposits			1,071,900											1,074,292
Other liabilities			37,683											40,435
Total liabilities			2,991,299											3,082,645
Stockholders’ equity
Common stock			13,738											13,541
Paid-in capital			162,811											159,523
Treasury stock			(16,741	)										(16,741	)
Retained earnings			161,181											154,041
Accumulated other comprehensive loss			(28,821	)										(36,419	)
Total stockholders’ equity attributable to parent			292,168											273,945
Noncontrolling interest			(74	)										76
Total stockholders’ equity			292,094											274,021
Total liabilities and stockholders’ equity		$	3,283,393										$	3,356,666
Net interest spread (tax-equivalent)										2.15	%										2.82	%
Net interest income and margin (tax-equivalent) 1						$	109,916			3.67	%						$	124,229			4.04	%
Less: Tax-equivalent adjustments						$	(718	)									$	(946	)
Net interest spread										2.13	%										2.79	%
Net interest income and margin						$	109,198			3.64	%						$	123,283			4.01	%
1 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 13. 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. 3 The senior term loan was paid off in May 2024, and the unamortized debt issuance costs were recorded as interest expense upon the repayment.

Selected Financial Data (Unaudited) (Dollars in thousands, except per share data)
		Quarterly												Year-to-Date
		2024				2024				2023				2024				2023
		Fourth Quarter				Third Quarter				Fourth Quarter
Earnings and Per Share Data:
Net income		$	9,440			$	2,080			$	7,911				20,091				31,232
Earnings per share from continuing operations - basic		$	0.73			$	0.16			$	0.62			$	1.56			$	1.77
Earnings per share from discontinued operations - basic		$	—			$	—			$	—			$	—			$	0.69
Earnings per share - basic		$	0.73			$	0.16			$	0.62			$	1.56			$	2.46
Earnings per share from continuing operations - diluted		$	0.72			$	0.16			$	0.61			$	1.53			$	1.72
Earnings per share from discontinued operations - diluted		$	—			$	—			$	—			$	—			$	0.68
Earnings per share - diluted		$	0.72			$	0.16			$	0.61			$	1.53			$	2.40
Cash dividends paid per common share		$	0.17			$	0.17			$	0.17			$	0.68			$	0.68
Book value per common share		$	23.61			$	23.44			$	22.68			$	23.61			$	22.68
Tangible book value per common share 1		$	23.37			$	23.20			$	22.43			$	23.37			$	22.43
Weighted-average shares outstanding - basic			12,937,364				12,927,962				12,740,193				12,890,161				12,694,206
Weighted-average shares outstanding - diluted			13,195,215				13,169,011				13,024,562				13,136,758				12,997,332
Performance Ratios:
Return on average assets 2			1.2	%			0.3	%			1.0	%			0.6	%			0.9	%
Return on average equity 2			12.7	%			2.8	%			11.6	%			6.9	%			11.4	%
Net interest margin 3 4			3.46	%			3.61	%			4.06	%			3.67	%			4.04	%
Efficiency ratio 5 6			72.8	%			88.7	%			79.6	%			80.4	%			82.3	%
Overhead ratio 2 7			4.3	%			3.7	%			3.4	%			3.7	%			3.5	%
Equity to assets			9.8	%			8.9	%			8.7	%			9.8	%			8.7	%
Asset Quality Data and Ratios:
Charge-offs		$	2,677			$	1,392			$	1,868			$	7,757			$	18,479
Recoveries		$	1,153			$	681			$	1,343			$	3,357			$	9,185
Net loan charge-offs to total loans 2 8			0.3	%			0.1	%			0.1	%			0.2	%			0.4	%
Allowance for credit losses		$	19,663			$	21,499			$	22,124			$	19,663			$	22,124
Allowance for credit losses to total loans 9			0.94	%			0.99	%			0.95	%			0.94	%			0.95	%
Nonperforming loans		$	24,607			$	28,556			$	8,267			$	24,607			$	8,267
Nonperforming loans to total loans			1.2	%			1.3	%			0.4	%			1.2	%			0.4	%
Mortgage Company Equity Method Investees Production Data10:
Mortgage pipeline		$	1,025,742			$	1,048,865			$	706,873			$	1,025,742			$	706,873
Loans originated		$	1,325,698			$	1,469,223			$	1,020,128			$	5,228,415			$	4,319,382
Loans closed		$	947,004			$	937,333			$	724,453			$	3,366,493			$	3,007,221
Loans sold		$	777,821			$	655,668			$	639,788			$	2,988,639			$	2,466,807
1 Common equity less total goodwill and intangibles per common share, a non-U.S. GAAP measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 13. 2 Annualized for the quarterly periods presented. 3 Net interest income as a percentage of average interest-earning assets. 4 Presented on a fully tax-equivalent basis, a non-GAAP financial measure. 5 Noninterest expense as a percentage of net interest income and noninterest income, a non-U.S. GAAP measure. 6 Includes net income from discontinued operations. 7 Noninterest expense as a percentage of average assets, a non-U.S. GAAP measure. 8 Charge-offs, less recoveries. 9 Excludes loans held for sale. 10 Information is related to Intercoastal Mortgage Company, LLC and Warp Speed Holdings LLC, entities in which MVB has an ownership interest that are accounted for as equity method investments.

Non-GAAP Reconciliation: Net Interest Margin on a Full Tax-Equivalent Basis The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:
		Three Months Ended												Twelve Months Ended
(Dollars in thousands)		December 31, 2024				September 30, 2024				December 31, 2023				December 31, 2024				December 31, 2023
Net interest margin - U.S. GAAP basis
Net interest income		$	24,904			$	26,585			$	31,107			$	109,198			$	123,283
Average interest-earning assets			2,887,516				2,947,073				3,054,958				2,997,951				3,077,717
Net interest margin			3.43	%			3.59	%			4.04	%			3.64	%			4.01	%
Net interest margin - non-U.S. GAAP basis
Net interest income		$	24,904			$	26,585			$	31,107			$	109,198			$	123,283
Impact of fully tax-equivalent adjustment			186				189				193				718				946
Net interest income on a fully tax-equivalent basis		$	25,090			$	26,774			$	31,299			$	109,916			$	124,229
Average interest-earning assets			2,887,516				2,947,073				3,054,958				2,997,951				3,077,717
Net interest margin on a fully tax-equivalent basis			3.46	%			3.61	%			4.06	%			3.67	%			4.04	%

Non-U.S. GAAP Reconciliation: Tangible Book Value per Common Share and Tangible Common Equity Ratio (Unaudited) (Dollars in thousands, except per share data)
		December 31, 2024				September 30, 2024				December 31, 2023
Tangible Book Value per Common Share
Goodwill		$	2,838			$	2,838			$	2,838
Intangibles			262				285				352
Total intangibles		$	3,100			$	3,123			$	3,190
Total equity attributable to parent		$	305,679			$	303,086			$	289,384
Less: Total intangibles			(3,100	)			(3,123	)			(3,190	)
Tangible common equity		$	302,579			$	299,963			$	286,194
Tangible common equity		$	302,579			$	299,963			$	286,194
Common shares outstanding (000s)			12,945				12,928				12,758
Tangible book value per common share		$	23.37			$	23.20			$	22.43
Tangible Common Equity Ratio
Total assets		$	3,128,704			$	3,418,756			$	3,313,882
Less: Total intangibles			(3,100	)			(3,123	)			(3,190	)
Tangible assets		$	3,125,604			$	3,415,633			$	3,310,692
Tangible assets		$	3,125,604			$	3,415,633			$	3,310,692
Tangible common equity		$	302,579			$	299,963			$	286,194
Tangible common equity ratio			9.7	%			8.8	%			8.6	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213015377/en/

Questions or comments concerning this earnings release should be directed to:

MVB Financial Corp.

Donald T. Robinson, President and Chief Financial Officer

(304) 598-3500

drobinson@mvbbanking.com

Amy Baker, VP, Corporate Communications and Marketing

(844) 682-2265

abaker@mvbbanking.com

Source: MVB Financial Corp.

FAQ

What was MVB Financial's (MVBF) net income for Q4 2024?

MVB Financial reported net income of $9.4 million for Q4 2024, representing an increase of $7.4 million from the previous quarter.

How much did MVBF's deposits decline in Q4 2024?

MVBF's deposits declined by $308.0 million (10.3%) to $2.69 billion in Q4 2024 compared to Q3 2024.

What was MVBF's Community Bank Leverage Ratio in Q4 2024?

MVBF's Community Bank Leverage Ratio was 11.2% as of December 31, 2024, an improvement from 10.9% in Q3 2024.

What caused the significant increase in MVBF's noninterest income for Q4 2024?

The increase in noninterest income was primarily driven by an $11.8 million gain from a sale-leaseback transaction and increased revenue from subsidiary Victor Technologies.

What was MVBF's loan performance in Q4 2024?

MVBF's total loans declined by $71.1 million (3.3%) to $2.10 billion in Q4 2024 compared to Q3 2024.