MVB Financial Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $0.4 million ($0.03 basic and diluted EPS) for the quarter, compared to $12.3 million ($0.95 basic, $0.93 diluted) in the prior quarter and $17.1 million ($1.36 basic, $1.32 diluted) in the prior year quarter.
• Net interest income increased 1.0% to $32.6 million for the quarter and 18.1% year-to-date to $93.3 million.
• Core fully tax-equivalent (FTE) net interest margin expanded 15 basis points to 4.02% for the quarter, up from 3.87% in the prior quarter.
• Total cost of funds decreased 6 basis points to 2.07%.
• Noninterest expense declined 1.9% to $29.8 million for the quarter.
• Provision for credit losses totaled $9.9 million, compared to $4.7 million in the prior quarter and $4.4 million in the prior year quarter.
• Net charge-offs were $2.5 million (0.41% annualized) for the quarter, up from $1.4 million (0.23% annualized) in the prior quarter.
• Allowance for credit losses increased to $36.2 million (1.44% of total loans) from $28.2 million (1.14%) in the prior quarter.
• Book value per common share was $25.35, down from $26.61 in the prior quarter; tangible book value per share was $25.26, down from $26.52.
• Tangible common equity ratio was 9.3% as of September 30, 2026, down from 9.7% in the prior quarter.

Guidance and Future Outlook:

• Management stated that progress in funding diversification, payments revenue growth, and operating efficiency is strengthening the foundation for improved financial performance.
• No specific forward-looking numerical guidance was provided in the release.

Business Segments and Product Lines:

• Fintech Payments deposits increased 28.1% quarter-over-quarter to $766.0 million, representing 24.8% of total deposits, and up 55.4% year-over-year.
• Payment card and service charge income was $5.2 million for the quarter, down 12.8% quarter-over-quarter due to seasonality, but up 39.6% year-over-year; year-to-date income increased 22%.
• Onboarded four new fintech partners during the quarter, bringing the year-to-date total to nine new partners (compared to five in the full year 2025).
• Total loan balances increased $43.8 million (1.8%) to $2.52 billion, marking the sixth consecutive quarter of loan growth.
• Total deposits were $3.09 billion, down $23.6 million (0.8%) from the prior quarter-end.
• The loan-to-deposit ratio increased to 81.6% from 79.6%.

Market and Competitive Landscape:

• The company highlighted the value of its funding diversification strategy in a rising interest rate environment, noting reduced reliance on higher-cost funding sources.
• Payment card and service charge income growth was partially offset by lower equity method investment income reflecting lower mortgage activity due to increased market interest rates.

Risks and Challenges:

• Credit quality faced headwinds from a specific acquisition-and-development land loan involving borrower- and property-specific circumstances, which accounted for nearly three-quarters of the increase in nonperforming loans and almost half of the provision for credit losses.
• The company continues to wind down its legacy SBA portfolio, which totals approximately $23 million.
• Nonperforming loans increased to $46.8 million (1.9% of total loans) from $29.2 million (1.2%) in the prior quarter.
• Accumulated other comprehensive loss increased from $18.0 million to $32.6 million, contributing to the decline in tangible book value per share.

Management Commentary and Tone:

• Larry F. Mazza, President and CEO, noted tangible progress on key initiatives, citing a 15 basis point expansion in core net interest margin and continued loan growth.
• Management characterized the elevated provision as decisive action to address specific credit exposures, expressing confidence that criticized loans have declined approximately 45% since early 2025 and that the allowance for credit losses has nearly doubled, reflecting a strengthened credit risk profile.
• Management emphasized that no broader deterioration was observed across the loan portfolio.

Other Key Points:

• Total noninterest income declined 58.3% to $7.8 million for the quarter, primarily due to the absence of a $10.0 million pretax gain associated with a Fintech investment recognized in the prior quarter.
• Cash dividends paid per common share were $0.17 for the quarter.
• The Community Bank Leverage Ratio was 9.7%, Tier 1 Risk-Based Capital Ratio was 11.3%, and MVB Bank's Total Risk-Based Capital Ratio was 12.6% as of September 30, 2026.
• Conference call and webcast details were provided for October 29, 2026, at 5:00 PM ET.