MVB Financial Corp. Declares Third Quarter 2024 Dividend

Rhea-AI Summary

MVB Financial Corp. (NASDAQ: MVBF) has declared a quarterly cash dividend of $0.17 per share for the third quarter of 2024, maintaining the same level as the previous quarter. The dividend is payable on September 15, 2024, to shareholders of record as of September 1, 2024. CEO Larry F. Mazza highlighted improved expense control and shareholder value creation in the form of tangible book value per share growth during the second quarter. The company also reported improved measures of capital strength despite facing seasonal considerations related to its Banking-as-a-Service (BaaS) operations and online gaming vertical. MVB emphasized the strength of its liquidity position, even with low seasonality and the exit of digital asset program account relationships.

Positive

• Maintained quarterly dividend of $0.17 per share
• Improved expense control in Q2
• Increased tangible book value per share
• Improved measures of capital strength
• Strong liquidity position

Negative

• Seasonal impact on BaaS operations and online gaming vertical
• Exit of digital asset program account relationships

Insights

Financial Analyst

MVB Financial's decision to maintain its quarterly dividend at $0.17 per share signals stability in their financial position. This consistency is noteworthy given the improved expense control and enhanced capital strength mentioned by CEO Larry Mazza. The growth in tangible book value per share is a positive indicator for shareholders, suggesting increased intrinsic value.

However, the reference to "notable developments" impacting near-term financial results warrants caution. The seasonal considerations in BaaS operations and online gaming vertical, along with the exit of digital asset program accounts, may have pressured revenues. While liquidity remains strong, these factors could influence short-term performance. Investors should closely monitor upcoming financial reports to gauge the full impact of these developments on MVB's profitability and growth trajectory.

Banking Industry Expert

MVB's maintenance of its dividend amid challenging market conditions demonstrates confidence in their financial stability. The focus on Banking-as-a-Service (BaaS) and online gaming verticals positions MVB at the forefront of fintech-banking integration, a potentially high-growth area. However, the seasonality in these sectors introduces volatility that traditional banking typically doesn't face.

The exit from digital asset program relationships is noteworthy, potentially reflecting a strategic shift or risk management decision. This move could impact revenue in the short term but may enhance long-term stability. The emphasis on improved expense control and capital strength suggests MVB is prioritizing a robust balance sheet, which is important in the current economic environment where interest rates and regulatory scrutiny are increasing. Investors should watch for how MVB balances innovation in BaaS with traditional banking stability.

FAIRMONT, W.Va.--(BUSINESS WIRE)-- MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB,” or the “Company”) has declared a quarterly cash dividend of $0.17 per share, maintaining the dividend declared in the previous quarter for shareholders of record as of September 1, 2024, payable on September 15, 2024. This is the third quarterly dividend for 2024.

“Several notable developments during the second quarter impacted our near-term financial results, while also helped to solidify our strategy, setting the stage for future growth and improved profitability,” said Larry F. Mazza, Chief Executive Officer, MVB.

“MVB’s second quarter financial results were marked by improved expense control, shareholder value creation in the form of tangible book value per share growth, improved measures of capital strength and seasonal considerations, primarily related to MVB’s Banking-as-a-Service (BaaS) operations and online gaming vertical. We are pleased with the strength of our liquidity, despite the low seasonality and exit of digital asset program account relationships.”

About MVB Financial Corp.

MVB Financial Corp., the holding company of MVB Bank, Inc., is publicly traded on The Nasdaq Capital Market® under the ticker “MVBF.” Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its subsidiary, MVB Bank, Inc., and the Bank's subsidiaries, the Company provides banking services to Fintech clients throughout the United States. For more information about MVB, please visit http://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 bank failures and volatility; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in Fintech companies; competition; the pace of recovery following the continued effects of the COVID-19 pandemic and its impact on the Company’s business and financial condition; changes in economic, business, and political conditions; changes in demand for loan products and deposit flow; 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, 2022, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240821057373/en/

MEDIA

Amy Baker

VP, Corporate Communications and Marketing

MVB Bank

abaker@mvbbanking.com

(844) 682-2265



INVESTOR RELATIONS

Marcie Lipscomb

mlipscomb@mvbbanking.com

(844) 682-2265

Source: MVB Financial Corp.

FAQ

What is MVB Financial Corp's (MVBF) dividend for Q3 2024?

MVB Financial Corp. (MVBF) declared a quarterly cash dividend of $0.17 per share for the third quarter of 2024.

When is the Q3 2024 dividend payable for MVBF shareholders?

The Q3 2024 dividend is payable on September 15, 2024, to MVBF shareholders of record as of September 1, 2024.

How did MVB Financial's (MVBF) second quarter 2024 performance impact shareholders?

MVB Financial's Q2 2024 performance showed improved expense control, increased tangible book value per share, and improved measures of capital strength, positively impacting shareholder value.

What challenges did MVB Financial (MVBF) face in Q2 2024?

MVB Financial faced seasonal considerations related to its Banking-as-a-Service operations and online gaming vertical, as well as the exit of digital asset program account relationships in Q2 2024.