MVB Financial Corp. Announces First Quarter 2026 Results

MVB Financial Corp. Announces First Quarter 2026 Results Company to Host a Conference Call and Webcast at 5:00 PM ET 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 first quarter of 2026. The Fintech-enabled bank powering payments, banking-as-a-service and gaming programs for leading Fintech companies nationwide, reported net income of $5.2 million, or $0.41 basic and $0.39 diluted earnings per share, for the first quarter of 2026. First Quarter 2026 Highlights (Compared to Fourth Quarter 2025) Loan growth up 2.6%, or 10.3% annualized, marking the fourth consecutive quarter of expansion. Payment card and service charge income up 13.5%. Noninterest expenses down 10.7%, reflecting technology-driven efficiency initiatives. Executed balance sheet actions to bring funding costs down and earnings power up. Sustained momentum in onboarding and payments pipeline activity. Subsequent to quarter-end, recognized a pre-tax gain of approximately $10.0 million in the second quarter related to an existing Fintech investment, which is expected to increase tangible book value by approximately $0.59 per share. From Larry F. Mazza, Chief Executive Officer and President, MVB Financial: “We delivered a strong first quarter, with earnings per share up over 40% year-over-year, demonstrating continued improvement in our core earnings power and establishing a clear trajectory for accelerated growth. Our commitment remains to maximize shareholder value through disciplined execution, continuous improvement of profitability metrics and strategic investments in high-return opportunities. “This momentum accelerated during the quarter, supported by solid loan growth, continued net interest margin expansion, improved efficiency and progress across our payments-related businesses. “Additionally, we continued to make strategic investments in artificial intelligence and automation to streamline operations, enhance the customer experience and improve overall execution efficiency. To align our organization with this strategy, we brought our technology and operations functions under unified leadership with Mike Giorgio’s appointment as Chief Operating Officer and strengthened our Board with the addition of Adam Famularo, who adds significant Fintech and artificial intelligence expertise. We are also pleased to welcome Dr. Kelly Nelson as Chairman of the Board and thank Marty Becker for his leadership and meaningful contributions to MVB’s growth and development. “Finally, subsequent to quarter-end, we recognized a gain in the second quarter related to an existing Fintech investment, further demonstrating the strength of our Fintech platform. Combined with the successful monetization of Victor last year, we believe this underscores our ability to both build and invest in high-value technology businesses, creating incremental value for shareholders.” FIRST QUARTER 2026 HIGHLIGHTS Net Interest Income, Net Interest Margin and Balance Sheet TrendsNet interest income totaled $28.5 million, an increase of $0.1 million, or 0.3%, from prior quarter, primarily reflecting higher average earning asset balances, partially offset by lower earning asset yields. Earning asset yields during the quarter were impacted by seasonal balance sheet dynamics, including higher levels of interest-bearing balances with banks.Net interest margin was 3.71%, an increase of one basis point from the prior quarter, primarily reflecting changes in the balance sheet mix, including higher average levels of noninterest-bearing deposits during the quarter, partially offset by lower earning asset yields. Total cost of funds decreased to 2.17% from 2.30% in the prior quarter, primarily reflecting a higher average balance of noninterest-bearing deposits.Average total earning assets increased $63.8 million, or 2.1%, from the prior quarter to $3.11 billion, primarily reflecting higher average loan balances and increased interest-bearing balances with banks, due primarily to seasonal deposit inflows. Total loan balances increased $60.6 million, or 2.6%, from the prior quarter to $2.40 billion, primarily due to increased loan demand and improved market conditions. Loan growth during the quarter was primarily concentrated in March and is expected to contribute more meaningfully to net interest income in subsequent periods.Total deposits were $2.90 billion as of March 31, 2026, an increase of $55.3 million, or 1.9%, from the prior quarter-end, primarily reflecting seasonal deposit inflows in certain banking-as-a-service deposit relationships. Noninterest-bearing deposits represented 34.9% of total deposits as of March 31, 2026, compared to 40.3% as of the prior quarter-end. Fluctuations in noninterest-bearing deposit balances on both an end-of-period and average basis were driven primarily by seasonal deposit inflows. The loan-to-deposit ratio was 83.0% as of March 31, 2026, compared to 82.4% as of the prior quarter-end.During the quarter, and as previously disclosed, the Company executed balance sheet optimization actions, including entering into a $20.0 million revolving line of credit and utilizing those proceeds, along with cash on hand, to repay approximately $40.0 million of higher-cost subordinated debt. These actions are expected to reduce funding costs and enhance net interest income, with estimated savings of approximately $1.8 million annually. As these actions were implemented late in the quarter, the full quarter benefit is expected to be realized beginning in the second quarter.Noninterest Income and ExpenseTotal noninterest income was $8.2 million for the first quarter of 2026, compared to $10.7 million in the prior quarter. The decrease in total noninterest income was primarily due to a holding gain on equity securities recognized in the fourth quarter of 2025. Excluding this item, core fee income increased approximately 3.9%, reflecting higher payment card and service charge income, benefitting from seasonal factors, while equity method investments income from our mortgage segment declined.We launched two new Fintech partners in the first quarter of 2026 as we continue to execute on our strong pipeline of Fintech opportunities.Total noninterest expense was $28.1 million for the first quarter of 2026, compared to $31.5 million in the prior quarter, a decrease of 10.7%. The improvement from the prior quarter was primarily driven by reduced professional fees and salaries and employee benefits expense. Compared to the prior year period, noninterest expense decreased 2.1%, while operating revenues increased 8.8%, resulting in positive operating leverage.Asset Quality and CapitalNonperforming loans totaled $34.7 million, or 1.4% of total loans, as of March 31, 2026, compared to $30.7 million, or 1.3% of total loans, as of December 31, 2025.Criticized loans as a percentage of total loans were 3.7% as of March 31, 2026 and, compared to 3.6% as of December 31, 2025. Classified loans as a percentage of total loans were 2.2%, compared to 2.3% as of the prior quarter end.Net charge-offs were $1.5 million, or 0.26% annualized of loans, for the first quarter, compared to $3.9 million, or 0.68% annualized, for the prior quarter.Provision for credit losses totaled $1.9 million, compared to $2.1 million for the prior quarter. The allowance for credit losses for loans was 0.94% of total loans at March 31, 2026, compared to 0.93% at December 31, 2025.Pre-tax, pre-provision earnings were $8.5 million in the first quarter of 2026, compared to $7.6 million in the fourth quarter of 2025 and $5.0 million in the first quarter of 2025.The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 10.1%, 12.6% and 13.5%, respectively, compared to 11.1%, 13.7% and 14.5%, respectively, at the prior quarter-end.The tangible common equity ratio, a non-U.S. GAAP financial measure 1, was 10.0% as of March 31, 2026, compared to 10.1% as of December 31, 2025 and 10.2% as of March 31, 2025.Accumulated other comprehensive loss was $18.1 million as of March 31, 2026, compared to $13.9 million as of December 31, 2025. The increase in accumulated other comprehensive loss during the quarter was primarily due to changes in the unrealized loss on available-for-sale investment securities portfolio, consistent with the increase in long-term market rates.Book value per common share and tangible book value per common share, a non-U.S. GAAP measure 1, were $26.07 and $25.98, respectively, representing decreases of 0.7%, from the prior quarter-end. The slight change in book value per common share and tangible book value per common share primarily reflects the increase in accumulated other comprehensive loss during the quarter and an increase in outstanding shares due to option exercises. 1See the reconciliation of this non-U.S. GAAP financial measure to its most directly comparable GAAP financial measure later in the release. Conference Call and Webcast The Company will host a conference call and webcast at 5:00 p.m. Eastern Time today, April 29, 2026, to discuss its quarterly financial results. The call can be accessed via telephone at 877-451-6152 (domestic) or 201-389-0879 (international). A recorded replay can be accessed through May 13, 2026, by dialing 844-512-2921 (domestic) or 412-317-6671 (international); access code: 13758984. Additionally, interested parties can listen to a live webcast of the call on the Company's website at ir.mvbbanking.com. An archived version of the webcast will be available in the same location shortly after the live call has ended. About MVB Financial Corp. MVB Financial Corp. (Nasdaq: MVBF) is an innovative bank powering Fintech solutions in payments, card issuance and online gaming programs for leading Fintech companies nationwide, while providing traditional retail and commercial banking services within established markets. MVB’s comprehensive platform includes money movement solutions across all modalities and embedded finance capabilities. MVB combines proven Fintech builder/incubator capabilities, innovative culture, regulatory expertise, core banking and AI-driven operational efficiency to enable Fintech partners to navigate complex regulatory requirements while accelerating time-to-market. 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; 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, including, without limitation, the imposition of international trade policies and any retaliatory responses thereto; 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, 2025, 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 (“GAAP”). Management uses these non-GAAP measures in its analysis of the Company’s performance. These measures should not be considered a substitute for GAAP basis measures, nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of non-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-GAAP measures are not formally defined under GAAP, and other entities may use calculation methods that differ from those used by the Company. As a complement to GAAP financial measures, management believes these non-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-GAAP measures. See the tables below for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures. MVB Financial Corp. Financial Highlights Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) Quarterly 2026 2025 2025 First Quarter Fourth Quarter First Quarter Interest income $ 44,774 $ 45,490 $ 43,229 Interest expense 16,322 17,111 16,553 Net interest income 28,452 28,379 26,676 Provision for credit losses 1,854 2,143 177 Net interest income after provision for credit losses 26,598 26,236 26,499 Total noninterest income 8,209 10,701 7,008 Noninterest expense: Salaries and employee benefits 16,152 17,372 16,412 Other expense 11,960 14,114 12,289 Total noninterest expenses 28,112 31,486 28,701 Income before income taxes 6,695 5,451 4,806 Income taxes 1,511 1,226 1,247 Net income, before noncontrolling interest 5,184 4,225 3,559 Net loss attributable to noncontrolling interest — — 18 Net income available to common shareholders $ 5,184 $ 4,225 $ 3,577 Earnings per share - basic $ 0.41 $ 0.33 $ 0.28 Earnings per share - diluted $ 0.39 $ 0.32 $ 0.27 Noninterest Income (Unaudited) (Dollars in thousands) Quarterly 2026 2025 2025 First Quarter Fourth Quarter First Quarter Card acquiring income $ 790 $ 908 $ 549 Service charges on deposits 1,080 831 1,158 Interchange income 3,216 2,741 3,278 Total payment card and service charge income 5,086 4,480 4,985 Equity method investments income 1,966 2,796 645 Compliance and consulting income — 21 501 Loss on sale of loans — — (69 ) Investment portfolio gains (losses) 669 3,452 (308 ) Gain on divestiture activity — 160 608 Loss on disposal of assets — — (342 ) Loss on derivatives — (466 ) — Other noninterest income 488 258 988 Total noninterest income $ 8,209 $ 10,701 $ 7,008 Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025 Cash and cash equivalents $ 177,635 $ 244,125 $ 251,450 Investment securities available-for-sale 421,729 410,510 419,617 Equity securities 51,459 50,643 44,317 Loans receivable 2,403,739 2,343,163 2,063,296 Less: Allowance for credit losses (22,605 ) (21,827 ) (19,165 ) Loans receivable, net 2,381,134 2,321,336 2,044,131 Premises and equipment, net 10,071 10,379 11,489 Other assets 280,270 271,925 248,683 Total assets $ 3,322,298 $ 3,308,918 $ 3,019,687 Noninterest-bearing deposits $ 1,011,098 $ 1,144,682 $ 1,033,056 Interest-bearing deposits 1,886,246 1,697,364 1,550,742 Subordinated debt 34,046 74,026 73,850 Revolving line of credit 20,000 — — Other liabilities 35,988 58,878 51,985 Total liabilities 2,987,378 2,974,950 2,709,633 Common stock 14,174 14,043 13,798 Additional paid-in capital 172,397 170,380 165,559 Retained earnings 193,413 190,414 173,557 Accumulated other comprehensive loss (18,061 ) (13,866 ) (26,119 ) Treasury stock (27,003 ) (27,003 ) (16,741 ) Total stockholders’ equity 334,920 333,968 310,054 Total liabilities and stockholders’ equity $ 3,322,298 $ 3,308,918 $ 3,019,687 Average Balances and Interest Rates (Unaudited) (Dollars in thousands) Three Months Ended Three Months Ended Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 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 $ 340,906 $ 3,031 3.61 % $ 363,831 $ 3,618 3.95 % $ 445,509 $ 4,734 4.31 % Investment securities: Taxable 361,901 4,409 4.94 330,865 3,888 4.66 327,676 2,757 3.41 Tax-exempt1 56,737 557 3.98 53,162 556 4.15 102,681 857 3.38 Loans:2 Commercial 1,774,717 30,232 6.91 1,720,707 30,663 7.07 1,492,238 28,020 7.62 Tax-exempt1 2,286 25 4.44 2,399 27 4.47 2,826 30 4.31 Real estate 487,773 4,883 4.06 500,193 5,412 4.29 546,106 5,862 4.35 Consumer 84,249 1,758 8.46 73,657 1,449 7.80 62,956 1,155 7.44 Total loans 2,349,025 36,898 6.37 2,296,956 37,551 6.49 2,104,126 35,067 6.76 Total earning assets 3,108,569 44,895 5.86 3,044,814 45,613 5.94 2,979,992 43,415 5.91 Less: Allowance for credit losses (21,829 ) (23,497 ) (19,630 ) Cash and due from banks 9,947 11,614 6,979 Other assets 336,744 309,283 327,995 Total assets $ 3,433,431 $ 3,342,214 $ 3,295,336 Liabilities Deposits: NOW $ 709,743 $ 5,217 2.98 % $ 820,803 $ 5,687 2.75 % $ 481,322 $ 3,134 2.64 % Money market checking 542,170 3,072 2.30 481,573 2,864 2.36 335,743 2,092 2.53 Savings 149,883 1,197 3.24 153,130 1,147 2.97 89,924 582 2.62 IRAs 7,137 60 3.41 7,406 66 3.54 7,722 81 4.25 CDs 550,973 5,764 4.24 587,912 6,429 4.34 814,782 9,793 4.87 Total interest-bearing deposits 1,959,906 15,310 3.17 2,050,824 16,193 3.13 1,729,493 15,682 3.68 Repurchase agreements and federal funds sold 4,186 21 2.03 3,153 13 1.64 3,167 15 1.92 FHLB and other borrowings 56 1 7.24 — — — 5,115 59 4.68 Subordinated debt 60,707 858 5.73 74,015 905 4.85 73,828 797 4.38 Revolving line of credit 7,556 132 7.08 — — — — — — Total interest-bearing liabilities 2,032,411 16,322 3.26 2,127,992 17,111 3.19 1,811,603 16,553 3.71 Noninterest-bearing demand deposits 1,011,690 824,967 1,130,900 Other liabilities 50,811 58,816 48,684 Total liabilities 3,094,912 3,011,775 2,991,187 Stockholders’ equity Common stock 14,117 13,954 13,796 Paid-in capital 171,040 168,589 164,967 Treasury stock (27,003 ) (26,917 ) (16,741 ) Retained earnings 193,468 189,132 170,365 Accumulated other comprehensive loss (13,103 ) (14,319 ) (28,275 ) Total stockholders’ equity attributable to parent 338,519 330,439 304,112 Noncontrolling interest — — 37 Total stockholders’ equity 338,519 330,439 304,149 Total liabilities and stockholders’ equity $ 3,433,431 $ 3,342,214 $ 3,295,336 Net interest income and margin (tax-equivalent)1 $ 28,573 3.73 % $ 28,502 3.71 % $ 26,862 3.66 % Less: Tax-equivalent adjustments (121 ) (123 ) (186 ) Net interest income and margin $ 28,452 3.71 % $ 28,379 3.70 % $ 26,676 3.63 % 1In 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-U.S. GAAP financial measure. See the reconciliation of this non-U.S. GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 11. 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. Selected Financial Data (Unaudited) (Dollars in thousands, except share and per share data) Quarterly 2026 2025 2025 First Quarter Fourth Quarter First Quarter Earnings and Per Share Data: Net income $ 5,184 $ 4,225 $ 3,577 Earnings per share - basic $ 0.41 $ 0.33 $ 0.28 Earnings per share - diluted $ 0.39 $ 0.32 $ 0.27 Cash dividends paid per common share $ 0.17 $ 0.17 $ 0.17 Book value per common share $ 26.07 $ 26.26 $ 23.94 Tangible book value per common share1 $ 25.98 $ 26.17 $ 23.85 Weighted-average shares outstanding - basic 12,795,271 12,630,451 12,948,178 Weighted-average shares outstanding - diluted 13,191,405 13,082,568 13,181,213 Performance Ratios: Return on average assets2 0.6 % 0.5 % 0.4 % Return on average equity2 6.1 % 5.1 % 4.7 % Net interest margin3 4 3.73 % 3.71 % 3.66 % Efficiency ratio5 76.7 % 80.6 % 85.2 % Overhead ratio2 6 3.3 % 3.8 % 3.5 % Equity to assets 10.1 % 10.1 % 10.3 % Asset Quality Data and Ratios: Charge-offs $ 1,890 $ 4,143 $ 1,387 Recoveries $ 392 $ 256 $ 530 Net loan charge-offs to total loans2, 7 0.26 % 0.68 % 0.17 % Allowance for credit losses $ 22,605 $ 21,827 $ 19,165 Allowance for credit losses to total loans 0.94 % 0.93 % 0.93 % Nonperforming loans $ 34,740 $ 30,655 $ 20,272 Nonperforming loans to total loans 1.4 % 1.3 % 1.0 % Mortgage Company Equity Method Investees Production Data8: Mortgage pipeline $ 1,126,262 $ 1,127,211 $ 1,078,835 Loans originated $ 1,406,921 $ 1,455,199 $ 1,310,702 Loans closed $ 936,789 $ 1,027,560 $ 888,022 Loans sold $ 747,829 $ 721,185 $ 644,683 1 Common equity, less total goodwill and intangibles per common share, a non-U.S. GAAP measure. See the reconciliation of this non-U.S. GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 11. 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-U.S. GAAP financial measure. 5 Noninterest expense as a percentage of net interest income and noninterest income. 6 Noninterest expense as a percentage of average assets. 7 Ratio of charge-offs, less recoveries to total loans. 8 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-U.S. GAAP Reconciliation: Net Interest Income and Net Interest Margin on a Fully Tax-Equivalent Basis The following table reconciles, for the periods shown below, net interest income and net interest margin on a fully tax-equivalent basis: Three Months Ended (Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025 Net interest margin - U.S. GAAP basis Net interest income $ 28,452 $ 28,379 $ 26,676 Average interest-earning assets $ 3,108,569 $ 3,044,814 $ 2,979,992 Net interest margin 3.71 % 3.70 % 3.63 % Net interest margin - non-U.S. GAAP basis Net interest income $ 28,452 $ 28,379 $ 26,676 Impact of fully tax-equivalent adjustment 121 123 186 Net interest income on a fully tax-equivalent basis $ 28,573 $ 28,502 $ 26,862 Average interest-earning assets $ 3,108,569 $ 3,044,814 $ 2,979,992 Net interest margin on a fully tax-equivalent basis 3.73 % 3.71 % 3.66 % Non-U.S. GAAP Reconciliation: Tangible Book Value per Common Share and Tangible Common Equity Ratio (Unaudited) (Dollars in thousands, except per share data) March 31, 2026 December 31, 2025 March 31, 2025 Tangible Book Value per Common Share Goodwill $ 1,200 $ 1,200 $ 1,200 Intangibles — — — Total intangibles $ 1,200 1,200 1,200 Total equity attributable to parent $ 334,920 333,968 310,054 Less: Total intangibles (1,200 ) (1,200 ) (1,200 ) Tangible common equity $ 333,720 $ 332,768 $ 308,854 Tangible common equity $ 333,720 $ 332,768 $ 308,854 Common shares outstanding (000s) 12,847 12,716 12,950 Tangible book value per common share $ 25.98 $ 26.17 $ 23.85 Tangible Common Equity Ratio Total assets $ 3,322,298 $ 3,308,918 $ 3,019,687 Less: Total intangibles (1,200 ) (1,200 ) (1,200 ) Tangible assets $ 3,321,098 $ 3,307,718 $ 3,018,487 Tangible assets $ 3,321,098 $ 3,307,718 $ 3,018,487 Tangible common equity $ 333,720 $ 332,768 $ 308,854 Tangible common equity ratio 10.0 % 10.1 % 10.2 % Source: MVB Financial Corp.