MVB Financial Corp. Announces Second Quarter 2024 Results

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 second quarter of 2024, with reported net income of $4.1 million, or $0.32 basic and $0.31 diluted earnings per share.

Second Quarter 2024 Highlights

MVB names payments industry veteran Jeremy Kuiper as Fintech President.

MVB and Intuit-Credit Karma renew partnership agreement.

Exit of digital asset program account relationships during second quarter reduced EPS by $0.08 with strong funding and liquidity profile maintained.

Noninterest bearing deposits represent 34.1% of total deposits | Loan-to-deposit ratio of 76.5%.

Noninterest expense declined 4.2% from prior quarter on easing cost pressures.

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

“There were several notable developments during the second quarter that impacted our near-term financial results, while also helping to solidify our strategy, setting the stage for future growth and improved profitability.

“First, we have extended the term of our partnership agreement with Intuit-Credit Karma, the consumer technology platform with more than 120 million members in the U.S. We have been trusted partners for five years and look forward to further strengthening our relationship to benefit our clients and communities.

“Second, as previously disclosed, MVB Bank has named Jeremy Kuiper as Executive Vice President, Fintech President. Jeremy brings 25 years of payments industry experience at the executive and board level. With Jeremy’s expertise, we look forward to expanding our Fintech banking to even greater success as a key driver of deposits and fee income for MVB Bank.

“Finally, we initiated the process of winding down MVB’s digital asset program account relationships. Changing market conditions and profitability challenges contributed to an unfavorable risk/reward dynamic, prompting our decision to exit this business. This action reduced our second quarter EPS by $0.08.

“MVB’s second quarter financial results were otherwise solid, 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 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.”

SECOND QUARTER 2024 HIGHLIGHTS

• Deposit trends reflect wind down of digital asset program account relationships and expected seasonal factors.
  • The Company expected a decline in total deposits upon the conclusion of the NFL, college basketball and tax seasons, in addition to electing to exit digital asset program account relationships. Total deposits declined 8.3%, or $262.5 million, to $2.9 billion compared to the prior quarter-end, primarily reflecting lower noninterest bearing (“NIB”) deposits, which decreased 29.3%, or $407.3 million, to $983.8 million. Digital asset program account balances, which are noninterest bearing, declined $307.0 million to $28.1 million as compared to the prior quarter-end.
  • The loan-to-deposit ratio was 76.5% as of June 30, 2024, compared to 72.1% as of March 31, 2024, and 78.1% as of June 30, 2023. The loan-to-deposit ratio at June 30, 2024 aligns with the Company’s liquidity management strategy.
• Net interest income lower on margin compression, deliberate balance sheet contraction, decline in loan balances and seasonal factors.
  • Net interest income on a fully tax-equivalent basis, a non-U.S. GAAP financial measure, declined 8.6%, or $2.6 million, to $27.7 million relative to the prior quarter, reflecting net interest margin contraction and lower earning asset balances.
  • Net interest margin on a fully tax-equivalent basis was 3.75%, down eight basis points from the prior quarter, primarily reflecting lower loan yields due to the migration of a $14.6 million loan to nonperforming status, lower loan balances and slightly higher funding costs. Total cost of funds was 2.54%, up two basis points compared to the prior quarter.
  • Average earning asset balances declined 6.7% from the prior quarter, reflecting lower interest-bearing balances with banks and lower loan balances. The decline in cash balances primarily reflects the deliberate exiting of digital asset program account balances and, to a lesser extent, seasonal considerations related to tax and gaming deposits. Average total loan balances declined 2.0% from the prior quarter, reflecting slower market demand.
• Expenses decline as cost pressures ease.
  • Noninterest expense declined 4.2% to $28.9 million relative to the prior quarter, primarily reflecting lower salaries and employee benefits costs and lower professional fees. Relative to the prior year-ago period, noninterest expense declined 4.5%.
• Noninterest income down on seasonal considerations and the exit of digital asset program relationships; mortgage banking profitable.
  • Total noninterest income declined 8.8%, or $0.7 million, relative to the prior quarter, to $7.1 million, primarily reflecting lower payment card and service charge income and other operating income, which includes wire transfer fees. The declines were partially offset by equity method investment income from our mortgage segment, compared to a loss in the prior quarter, and higher compliance and consulting income. Relative to the prior year, which removes the seasonal component, total noninterest income grew 11.3%, or $0.7 million, reflecting higher payment card and service charge income, compliance and consulting income, combined with losses on divestiture activity, loan sales and the sale of equity securities that did not recur in the current quarter.
• Capital strength further enhanced; tangible book value share growth evidences continued value creation.
  • The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 10.7%, 14.6% and 15.4%, respectively, compared to 10.1%, 14.4% and 15.2%, respectively, at the prior quarter end. The tangible common equity ratio, a non-U.S. GAAP financial measure, was 8.9% as of June 30, 2024, compared to 8.1% as of March 31, 2024, and June 30, 2023.
  • Book value per share and tangible book value per share, a non-U.S. GAAP measure discussed below, were $22.94 and $22.70, respectively, increases of 0.9% and 1.0% relative to the prior quarter-end and 6.4% and 6.5% from the year-ago period.
  • Nonperforming loans increased $15.6 million, or 206.1%, to $23.1 million, or 1.0% of total loans, from $7.5 million, or 0.3% of total loans, at the prior quarter end, largely reflecting the addition of a multifamily commercial construction loan with an outstanding balance of $14.6 million. Criticized loans as a percentage of total loans were 5.7%, as compared to 5.8% at the prior quarter end. Net charge-offs were $0.9 million, or 0.2%, for the second quarter of 2024, compared to $1.3 million, or 0.2%, for the prior quarter.
  • The provision for credit losses totaled $0.3 million, compared to $2.0 million for the prior quarter. The allowance for credit losses was 1.00% of total loans, as compared to 1.01% at the prior quarter end.

INCOME STATEMENT

Net interest income on a tax-equivalent basis totaled $27.7 million for the second quarter of 2024, a decline of $2.6 million, or 8.6%, from the first quarter of 2024 and $2.1 million, or 7.1%, from the second quarter of 2023. The decline from both prior periods reflects net interest margin contraction and lower average earning asset balances.

Interest income declined $3.9 million, or 7.8%, from the first quarter of 2024 and $0.9 million, or 1.9%, from the second quarter of 2023. The decline in interest income relative to the prior quarter reflects a decline in interest income from loans, driven by lower loan balances and a lower tax-equivalent yield on loans due primarily to the migration of a $14.6 million loan to nonperforming status, and a decline in interest income from cash balances due to seasonal considerations and the exit of digital asset program accounts. The decline in interest income relative to the year-ago period reflects a decline in interest income from loans, driven by lower loan balances, partially offset by a higher tax-equivalent yield on loans.

Interest expense declined $1.3 million, or 6.7%, from the first quarter of 2024 and increased $1.1 million, or 6.3%, from the second quarter of 2024. The cost of funds remained stable at 2.54% for the second quarter of 2024 as compared to 2.52% for the first quarter of 2024, and was up from 2.26% for the second quarter of 2023. Relative to the year-ago period, the increase reflects the impact of higher interest rates on our deposits and a shift in the mix of average deposits.

On a tax-equivalent basis, net interest margin for the second quarter of 2024 was 3.75%, a decline of eight basis points versus the first quarter of 2024 and five basis points versus the second 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-U.S. GAAP measure. Contraction in net interest margin from the prior quarter primarily reflects lower earning asset balances, including lower cash and loan balances, and the migration of a loan to nonperforming status. Relative to the year-ago period, the contraction in net interest margin reflects higher funding costs, which have outpaced the increase in average earning asset yields, and lower earning asset balances.

Noninterest income totaled $7.1 million for the second quarter of 2024, a decline of $0.7 million from the first quarter of 2024 and an increase of $0.7 million from the second quarter of 2023. The decline compared to the prior quarter is primarily driven by declines of $1.1 million in other operating income and $1.0 million in payment card and service charge income, partially offset by equity method investment income from our mortgage segment of $0.5 million in the current quarter, as compared to a loss of $1.1 million in the prior quarter. There was also a $0.7 million gain on sale of available-for-sale investment securities during the first quarter of 2024 without a comparable gain in the second quarter of 2024. The $0.7 million increase in noninterest income from the second quarter of 2023 was primarily driven by increases of $0.3 million in payment card and service charge income and $0.3 million in compliance consulting income. Additionally, there were losses on the divestiture of Flexia Payments, LLC of $1.1 million and $1.0 million on sale of loans during the second quarter of 2023 without corresponding losses in the current quarter. These increases were partially offset by declines of $1.4 million in equity method investment income from our mortgage segment and $0.7 million in other operating income.

Noninterest expense totaled $28.9 million for the second quarter of 2024, a decline of $1.3 million, or 4.2%, from the first quarter of 2024 and $1.4 million, or 4.5%, from the second quarter of 2023. The decline from the first quarter of 2024 primarily reflects declines of $0.5 million in salaries and employee benefits, $0.5 million in professional fees and $0.2 million in other operating expense. The decline from the second quarter of 2023 primarily reflects declines of $1.9 million in other operating expense, $0.7 million in travel, entertainment, dues and subscriptions and $0.2 million in equipment depreciation and maintenance. These declines were partially offset by increases of $1.2 million in professional fees and $0.2 million in salaries and employee benefit expense.

BALANCE SHEET

Loans totaled $2.21 billion as of June 30, 2024, a decline of $60.5 million, or 2.7%, from March 31, 2024, and $105.6 million, or 4.6%, from June 30, 2023. The decline in loan balances relative to the prior quarters primarily reflects lower market demand, the impact of loan amortization and payoffs and slower loan growth based on overall market conditions and portfolio management.

Deposits totaled $2.88 billion as of June 30, 2024, a decline of $262.5 million, or 8.3%, from March 31, 2024, and $76.1 million, or 2.6%, from June 30, 2023. The decline in deposits relative to the prior quarter reflects a decline in NIB deposits, partially offset by higher CD balances of $769.8 million, representing an increase of $73.5 million, or 10.6%, driven by a $50.1 million, or 11.2%, increase in brokered CDs and a $24.1 million, or 10.1%, increase in core CDs. Relative to the year-ago period, the decline reflects the increased utilization of off-balance sheet deposit networks to generate fee income, enhance capital efficiency and manage liquidity and concentration risk.

NIB deposits totaled $983.8 million as of June 30, 2024, a decline of $407.3 million, or 29.3%, from March 31, 2024, and consistent with the balance as of June 30, 2023, representing a slight decline of $3.7 million, or 0.4%. Relative to the period ended March 31, 2024, the decline in NIB deposits reflected the exit of digital asset program accounts, utilization of off-balance sheet deposit networks and seasonal considerations. Digital asset program account balances declined $307.0 million to $28.1 million as compared to the prior quarter-end. The Company estimates that exit of digital asset program account relationships reduced current quarter earnings per share by $0.08, based on the interest income that would have been earned on the average balance of the deposits held in 2024 prior to the exit, which were held in cash, and the wire fee income during the period. NIB deposits represented 34.1% of total deposits as of June 30, 2024, compared to 44.2% of total deposits at the prior quarter-end and 33.4% for the year-ago period.

Off-balance sheet deposits totaled $1.4 billion as of June 30, 2024, a decline of $168.5 million, or 11%, compared to $1.5 billion at March 31, 2024, and up $296.2 million, or 28%, from $1.1 billion at June 30, 2023. Off-balance sheet deposit networks are utilized to generate fee income, enhance capital efficiency and manage liquidity and concentration risk.

CAPITAL

The Community Bank Leverage Ratio was 10.7% as of June 30, 2024, compared to 10.1% as of March 31, 2024, and 10.0% as of June 30, 2023. MVB’s Tier 1 Risk-Based Capital Ratio was 14.6% as of June 30, 2024, compared to 14.4% as of March 31, 2024, and 13.8% as of June 30, 2023. The Bank’s Total Risk-Based Capital Ratio was 15.4% as of June 30, 2024, compared to 15.2% as of March 31, 2024, and 14.9% as of June 30, 2023.

The tangible common equity ratio, a non-U.S. GAAP financial measure, was 8.9% as of June 30, 2024, compared to 8.1% as of March 31, 2024, and June 30, 2023. See the reconciliation of the tangible common equity ratio to its most directly comparable U.S. GAAP financial measure later in this release.

The Company issued a quarterly cash dividend of $0.17 per share for the second quarter of 2024, consistent with the first quarter of 2024 and the second quarter of 2023.

ASSET QUALITY

Nonperforming loans totaled $23.1 million, or 1.0% of total loans, as of June 30, 2024, as compared to $7.5 million, or 0.3% of total loans, as of March 31, 2024, and $13.6 million, or 0.6% of total loans, as of June 30, 2023. The increase in nonperforming loans from the prior quarters was driven by the addition of one $14.6 million commercial construction loan in the multifamily space. The Company believes the loan is properly collateralized with a loan to value of less than 70%. Criticized loans as a percentage of total loans were 5.7%, compared to 5.8% as of March 31, 2024, and 3.1% as of June 30, 2023.

Net charge-offs were $0.9 million, or 0.2% of total loans, for the second quarter of 2024, compared to $1.3 million, or 0.2% of total loans, for the first quarter of 2024 and $1.2 million, or 0.2% of total loans, for the second quarter of 2023.

The provision for credit losses totaled $0.3 million, compared to $2.0 million for the prior quarter ended March 31, 2024, and a release of allowance of $4.2 million for the quarter ended June 30, 2023. The allowance for credit losses was 1.00% of total loans at June 30, 2024, compared to 1.01% at March 31, 2024, and 1.31% at June 30, 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
	Second Quarter			First Quarter			Second Quarter
Interest income	$	46,127		$	50,030		$	47,031		$	96,157		$	91,794
Interest expense		18,557			19,891			17,449			38,448			29,483
Net interest income		27,570			30,139			29,582			57,709			62,311
Provision (release of allowance) for credit losses		254			1,997			(4,235	)		2,251			341
Net interest income after provision (release of allowance) for credit losses		27,316			28,142			33,817			55,458			61,970
Total noninterest income		7,142			7,834			6,419			14,976			9,486
Noninterest expense:
Salaries and employee benefits		15,949			16,489			15,746			32,438			32,492
Other expense		12,981			13,702			14,536			26,683			26,107
Total noninterest expenses		28,930			30,191			30,282			59,121			58,599
Income before income taxes		5,528			5,785			9,954			11,313			12,857
Income taxes		1,379			1,283			1,956			2,662			2,421
Net income from continuing operations, before noncontrolling interest		4,149			4,502			7,998			8,651			10,436
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		4,149			4,502			7,998			8,651			19,218
Net (income) loss attributable to noncontrolling interest		(60	)		(20	)		114			(80	)		236
Net income available to common shareholders	$	4,089		$	4,482		$	8,112		$	8,571		$	19,454
Earnings per share from continuing operations - basic	$	0.32		$	0.35		$	0.64		$	0.67		$	0.84
Earnings per share from discontinued operations - basic	$	—		$	—		$	—		$	—		$	0.69
Earnings per share - basic	$	0.32		$	0.35		$	0.64		$	0.67		$	1.54
Earnings per share from continuing operations - diluted	$	0.31		$	0.34		$	0.63		$	0.66		$	0.82
Earnings per share from discontinued operations - diluted	$	—		$	—		$	—		$	—		$	0.68
Earnings per share - diluted	$	0.31		$	0.34		$	0.63		$	0.66		$	1.50

Noninterest Income (Unaudited) (Dollars in thousands)
	Quarterly								Year-to-Date
	2024			2024			2023			2024			2023
	Second Quarter		First Quarter			Second Quarter
Card acquiring income	$	337	$	251		$	788		$	588		$	1,410
Service charges on deposits		1,103		1,523			1,060			2,626			2,186
Interchange income		2,377		3,039			1,655			5,416			3,517
Total payment card and service charge income		3,817		4,813			3,503			8,630			7,113
Equity method investments gain (loss)		484		(1,128	)		1,873			(644	)		680
Compliance and consulting income		1,274		1,000			996			2,274			2,012
Loss on sale of loans		—		—			(989	)		—			(1,345	)
Investment portfolio gains (losses)		117		609			(134	)		726			(1,978	)
Loss on acquisition and divestiture activity		—		—			(986	)		—			(986	)
Other noninterest income		1,450		2,540			2,156			3,990			3,990
Total noninterest income	$	7,142	$	7,834		$	6,419		$	14,976		$	9,486

Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands)
	June 30, 2024			March 31, 2024			June 30, 2023
Cash and cash equivalents	$	455,517		$	640,426		$	455,835
Securities available-for-sale, at fair value		361,254			349,678			329,137
Equity securities		41,261			41,037			41,082
Loans held-for-sale		—			—			7,009
Loans receivable		2,206,793			2,267,310			2,312,387
Less: Allowance for credit losses		(22,084	)		(22,804	)		(30,294	)
Loans receivable, net		2,184,709			2,244,506			2,282,093
Premises and equipment, net		19,540			19,968			22,407
Other assets		225,723			251,775			214,284
Total assets	$	3,288,004		$	3,547,390		$	3,351,847
Noninterest-bearing deposits	$	983,809		$	1,391,070		$	987,555
Interest-bearing deposits		1,899,043			1,754,259			1,971,384
Senior term loan		—			6,549			8,835
Subordinated debt		73,663			73,602			73,414
Other liabilities		34,826			30,082			36,362
Stockholders' equity		296,663			291,828			274,297
Total liabilities and stockholders' equity	$	3,288,004		$	3,547,390		$	3,351,847

Reportable Segments (Unaudited)
Three Months Ended June 30, 2024	CoRe Banking		Mortgage Banking		Financial Holding Company			Other			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	46,038	$	103	$	3		$	—		$	(17	)	$	46,127
Interest expense		17,635		—		922			17			(17	)		18,557
Net interest income (expense)		28,403		103		(919	)		(17	)		—			27,570
Provision for credit losses		254		—		—			—			—			254
Net interest income (expense) after provision for credit losses		28,149		103		(919	)		(17	)		—			27,316
Noninterest income		4,898		485		2,769			3,128			(4,138	)		7,142
Noninterest Expenses:
Salaries and employee benefits		9,359		—		4,473			2,117			—			15,949
Other expenses		13,257		—		2,080			1,782			(4,138	)		12,981
Total noninterest expenses		22,616		—		6,553			3,899			(4,138	)		28,930
Income (loss), before income taxes		10,431		588		(4,703	)		(788	)		—			5,528
Income taxes		2,438		145		(1,016	)		(188	)		—			1,379
Net income (loss), before noncontrolling interest		7,993		443		(3,687	)		(600	)		—			4,149
Net income attributable to noncontrolling interest		—		—		—			(60	)		—			(60	)
Net income (loss) available to common shareholders	$	7,993	$	443	$	(3,687	)	$	(660	)	$	—		$	4,089

Three Months Ended March 31, 2024	CoRe Banking		Mortgage Banking			Financial Holding Company			Other			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	49,942	$	103		$	2		$	—		$	(17	)	$	50,030
Interest expense		18,927		—			959			22			(17	)		19,891
Net interest income (expense)		31,015		103			(957	)		(22	)		—			30,139
Provision for credit losses		1,997		—			—			—			—			1,997
Net interest income (expense) after provision for credit losses		29,018		103			(957	)		(22	)		—			28,142
Noninterest income		7,521		(1,129	)		2,265			3,264			(4,087	)		7,834
Noninterest Expenses:
Salaries and employee benefits		9,823		—			4,678			1,988			—			16,489
Other expenses		13,821		—			1,841			2,127			(4,087	)		13,702
Total noninterest expenses		23,644		—			6,519			4,115			(4,087	)		30,191
Income (loss) before income taxes		12,895		(1,026	)		(5,211	)		(873	)		—			5,785
Income taxes		2,878		(229	)		(1,157	)		(209	)		—			1,283
Net income (loss), before noncontrolling interest										—
Net income attributable to noncontrolling interest		—		—			—			(20	)		—			(20	)
Net income (loss) available to common shareholders	$	10,017	$	(797	)	$	(4,054	)	$	(684	)	$	—		$	4,482

Three Months Ended June 30, 2023	CoRe Banking			Mortgage Banking		Financial Holding Company			Other			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	46,929		$	105	$	3		$	6		$	(12	)	$	47,031
Interest expense		16,439			—		999			23			(12	)		17,449
Net interest income (expense)		30,490			105		(996	)		(17	)		—			29,582
Release of allowance for credit losses		(4,235	)		—		—			—			—			(4,235	)
Net interest income (expense) after release of allowance for credit losses		34,725			105		(996	)		(17	)		—			33,817
Noninterest income		4,113			1,872		3,116			1,051			(3,733	)		6,419
Noninterest Expenses:
Salaries and employee benefits		9,053			7		4,623			2,063			—			15,746
Other expenses		14,148			18		2,163			1,940			(3,733	)		14,536
Total noninterest expenses		23,201			25		6,786			4,003			(3,733	)		30,282
Income (loss), before income taxes		15,637			1,952		(4,666	)		(2,969	)		—			9,954
Income taxes		3,237			643		(1,207	)		(717	)		—			1,956
Net income (loss), before noncontrolling interest		12,400			1,309		(3,459	)		(2,252	)		—			7,998
Net income attributable to noncontrolling interest		—			—		—			114			—			114
Net income (loss) available to common shareholders	$	12,400		$	1,309	$	(3,459	)	$	(2,138	)	$	—		$	8,112

Six Months Ended June 30, 2024	CoRe Banking		Mortgage Banking			Financial Holding Company			Other			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	95,980	$	206		$	5		$	—		$	(34	)	$	96,157
Interest expense		36,562		—			1,881			39			(34	)		38,448
Net interest income (expense)		59,418		206			(1,876	)		(39	)		—			57,709
Provision for credit losses		2,251		—			—			—			—			2,251
Net interest income (expense) after provision for credit losses		57,167		206			(1,876	)		(39	)		—			55,458
Noninterest income		12,419		(644	)		5,034			6,392			(8,225	)		14,976
Noninterest Expenses:
Salaries and employee benefits		19,182		—			9,151			4,105			—			32,438
Other expenses		27,078		—			3,921			3,909			(8,225	)		26,683
Total noninterest expenses		46,260		—			13,072			8,014			(8,225	)		59,121
Income (loss), before income taxes		23,326		(438	)		(9,914	)		(1,661	)		—			11,313
Income taxes		5,316		(84	)		(2,173	)		(397	)		—			2,662
Net income (loss), before noncontrolling interest		18,010		(354	)		(7,741	)		(1,264	)		—			8,651
Net income attributable to noncontrolling interest		—		—			—			(80	)		—			(80	)
Net income (loss) available to common shareholders	$	18,010	$	(354	)	$	(7,741	)	$	(1,344	)	$	—		$	8,571

Six Months Ended June 30, 2023	CoRe Banking		Mortgage Banking		Financial Holding Company			Other			Intercompany Eliminations			Consolidated
(Dollars in thousands)
Interest income	$	91,591	$	210	$	36		$	—		$	(43	)	$	91,794
Interest expense		27,480		—		1,992			54			(43	)		29,483
Net interest income (expense)		64,111		210		(1,956	)		(54	)		—			62,311
Provision for credit losses		341		—		—			—			—			341
Net interest income (expense) after provision for credit losses		63,770		210		(1,956	)		(54	)		—			61,970
Noninterest income		7,131		686		5,526			2,835			(6,692	)		9,486
Noninterest Expenses:
Salaries and employee benefits		18,104		7		9,573			4,808			—			32,492
Other expenses		25,202		52		4,080			3,465			(6,692	)		26,107
Total noninterest expenses		43,306		59		13,653			8,273			(6,692	)		58,599
Income (loss), before income taxes		27,595		837		(10,083	)		(5,492	)		—			12,857
Income taxes		5,752		139		(2,149	)		(1,321	)		—			2,421
Net income (loss) from continuing operations		21,843		698		(7,934	)		(4,171	)		—			10,436
Income from discontinued operations, before income taxes		—		—		—			11,831			—			11,831
Income tax expense - discontinued operations		—		—		—			3,049			—			3,049
Net income from discontinued operations		—		—		—			8,782			—			8,782
Net income (loss), before noncontrolling interest		21,843		698		(7,934	)		4,611			—			19,218
Net loss attributable to noncontrolling interest		—		—		—			236			—			236
Net income (loss) available to common shareholders	$	21,843	$	698	$	(7,934	)	$	4,847		$	—		$	19,454

Average Balances and Interest Rates (Unaudited) (Dollars in thousands)
	Three Months Ended								Three Months Ended								Three Months Ended
	June 30, 2024								March 31, 2024								June 30, 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	$	380,278		$	5,065		5.36	%	$	549,894		$	7,341		5.37	%	$	444,600		$	5,542		5.00	%
Investment securities:
Taxable		252,963			1,905		3.03			246,091			1,743		2.85			220,687			1,229		2.23
Tax-exempt ^1		102,785			684		2.68			106,309			887		3.36			123,497			1,147		3.73
Loans and loans held-for-sale: ^2
Commercial		1,597,359			30,824		7.76			1,626,286			32,152		7.95			1,635,438			30,534		7.49
Tax-exempt ^1		3,261			35		4.32			3,373			37		4.41			3,822			42		4.41
Real estate		563,011			6,391		4.57			576,148			6,612		4.62			593,767			5,691		3.84
Consumer		73,531			1,374		7.52			77,300			1,452		7.55			128,113			3,096		9.69
Total loans		2,237,162			38,624		6.94			2,283,107			40,253		7.09			2,361,140			39,363		6.69
Total earning assets		2,973,188			46,278		6.26			3,185,401			50,224		6.34			3,149,924			47,281		6.02
Less: Allowance for credit losses		(22,596	)							(22,258	)							(35,143	)
Cash and due from banks		4,528								5,405								5,756
Other assets		305,644								335,029								289,161
Total assets	$	3,260,764							$	3,503,577							$	3,409,698
Liabilities
Deposits:
NOW	$	465,587		$	4,139		3.58	%	$	555,530		$	4,929		3.57	%	$	682,277		$	4,816		2.83	%
Money market checking		400,205			3,337		3.35			408,764			3,759		3.70			615,962			2,439		1.59
Savings		112,225			944		3.38			163,611			1,640		4.03			72,289			351		1.95
IRAs		7,948			81		4.10			7,762			74		3.83			6,401			45		2.82
CDs		731,337			9,130		5.02			674,611			8,529		5.08			662,753			8,799		5.33
Repurchase agreements and federal funds sold		3,459			4		0.47			2,951			—		—			5,428			—		—
FHLB and other borrowings		—			—		—			44			1		9.14			158			—		—
Senior term loan ^3		2,736			114		16.76			6,736			150		8.96			9,351			198		8.49
Subordinated debt		73,629			808		4.41			73,571			809		4.42			73,382			801		4.38
Total interest-bearing liabilities		1,797,126			18,557		4.15			1,893,580			19,891		4.22			2,128,001			17,449		3.29
Noninterest-bearing demand deposits		1,139,070								1,279,194								971,436
Other liabilities		36,101								42,017								38,842
Total liabilities		2,972,297								3,214,791								3,138,279
Stockholders’ equity
Common stock		13,731								13,659								13,533
Paid-in capital		162,518								161,532								158,601
Treasury stock		(16,741	)							(16,741	)							(16,741	)
Retained earnings		161,709								160,933								148,600
Accumulated other comprehensive loss		(32,299	)							(30,559	)							(32,714	)
Total stockholders’ equity attributable to parent		288,918								288,824								271,279
Noncontrolling interest		(451	)							(38	)							140
Total stockholders’ equity		288,467								288,786								271,419
Total liabilities and stockholders’ equity	$	3,260,764							$	3,503,577							$	3,409,698
Net interest spread (tax-equivalent)							2.11	%							2.12	%							2.73	%
Net interest income and margin (tax-equivalent)^1				$	27,721		3.75	%				$	30,333		3.83	%				$	29,832		3.80	%
Less: Tax-equivalent adjustments				$	(151	)						$	(194	)						$	(250	)
Net interest spread							2.09	%							2.10	%							2.70	%
Net interest income and margin				$	27,570		3.73	%				$	30,139		3.81	%				$	29,582		3.77	%
^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 19. ^2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. ^3The senior term loan was paid off in May 2024, and the unamortized debt issuance costs were recorded as interest expense upon the repayment.

	Six Months Ended								Six Months Ended
	June 30, 2024								June 30, 2023
	Average Balance			Interest Income/ Expense			Yield/ Cost		Average Balance			Interest Income/ Expense			Yield/ Cost
Assets
Interest-bearing balances with banks	$	465,086		$	12,406		5.36	%	$	365,291		$	8,695		4.80	%
Investment securities:
Taxable		249,527			3,648		2.94			228,587			3,077		2.71
Tax-exempt ^1		104,547			1,570		3.02			130,609			2,456		3.79
Loans and loans held-for-sale: ^2
Commercial		1,611,822			62,975		7.86			1,628,015			59,065		7.32
Tax-exempt ^1		3,317			72		4.37			3,882			85		4.42
Real estate		569,579			13,004		4.59			607,501			11,992		3.98
Consumer		75,416			2,827		7.54			132,804			6,959		10.57
Total loans		2,260,134			78,878		7.02			2,372,202			78,101		6.64
Total earning assets		3,079,294			96,502		6.30			3,096,689			92,329		6.01
Less: Allowance for credit losses		(22,427	)							(32,653	)
Cash and due from banks		4,967								3,015
Other assets		320,338								314,279
Total assets	$	3,382,172							$	3,381,330
Liabilities
Deposits:
NOW	$	510,558		$	9,068		3.57	%	$	739,273		$	9,478		2.59	%
Money market checking		404,484			7,096		3.53			413,718			3,367		1.64
Savings		137,918			2,585		3.77			82,735			991		2.42
IRAs		7,856			155		3.97			6,276			72		2.31
CDs		702,974			17,657		5.05			525,213			12,695		4.87
Repurchase agreements and federal funds sold		3,205			5		0.31			6,514			—		—
FHLB and other borrowings		22			1		9.14			35,347			888		5.07
Senior term loan ^3		4,736			264		11.21			9,557			392		8.27
Subordinated debt		73,600			1,617		4.42			73,350			1,600		4.40
Total interest-bearing liabilities		1,845,353			38,448		4.19			1,891,983			29,483		3.14
Noninterest-bearing demand deposits		1,209,132								1,174,965
Other liabilities		39,059								37,969
Total liabilities		3,093,544								3,104,917
Stockholders’ equity
Common stock		13,695								13,502
Paid-in capital		162,025								156,009
Treasury stock		(16,741	)							(16,741	)
Retained earnings		161,322								157,464
Accumulated other comprehensive income loss		(31,429	)							(34,022	)
Total stockholders’ equity attributable to parent		288,872								276,212
Noncontrolling interest		(244	)							201
Total stockholders’ equity		288,628								276,413
Total liabilities and stockholders’ equity	$	3,382,172							$	3,381,330
Net interest spread (tax-equivalent)							2.11	%							2.87	%
Net interest income and margin (tax-equivalent)^1				$	58,054		3.79	%				$	62,846		4.09	%
Less: Tax-equivalent adjustments				$	(345	)						$	(535	)
Net interest spread							2.09	%							2.84	%
Net interest income and margin				$	57,709		3.77	%				$	62,311		4.06	%
^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 19. ^2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. ^3The 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
	Second Quarter			First Quarter			Second Quarter
Earnings and Per Share Data:
Net income	$	4,089		$	4,482		$	8,112		$	8,571		$	19,454
Earnings per share from continuing operations - basic	$	0.32		$	0.35		$	0.64		$	0.67		$	0.84
Earnings per share from discontinued operations - basic	$	—		$	—		$	—		$	—		$	0.69
Earnings per share - basic	$	0.32		$	0.35		$	0.64		$	0.67		$	1.54
Earnings per share from continuing operations - diluted	$	0.31		$	0.34		$	0.63		$	0.66		$	0.82
Earnings per share from discontinued operations - diluted	$	—		$	—		$	—		$	—		$	0.68
Earnings per share - diluted	$	0.31		$	0.34		$	0.63		$	0.66		$	1.50
Cash dividends paid per common share	$	0.17		$	0.17		$	0.17		$	0.34		$	0.34
Book value per common share	$	22.94		$	22.73		$	21.57		$	22.94		$	21.57
Tangible book value per common share ^1	$	22.70		$	22.48		$	21.31		$	22.70		$	21.31
Weighted-average shares outstanding - basic		12,883,426			12,810,956			12,689,669			12,847,191			12,656,698
Weighted-average shares outstanding - diluted		13,045,660			13,119,292			12,915,294			13,058,791			12,959,725
Performance Ratios:
Return on average assets ^2		0.5	%		0.5	%		1.0	%		0.5	%		1.2	%
Return on average equity ^2		5.7	%		6.2	%		12.0	%		5.9	%		14.1	%
Net interest margin ^3 4		3.75	%		3.83	%		3.80	%		3.79	%		4.09	%
Efficiency ratio ^5		83.3	%		79.5	%		84.1	%		81.3	%		70.9	%
Overhead ratio ^2 6		3.5	%		3.4	%		3.6	%		3.5	%		3.5	%
Equity to assets		9.0	%		8.2	%		8.2	%		9.0	%		8.2	%
Asset Quality Data and Ratios:
Charge-offs	$	1,538		$	2,150		$	3,700		$	3,688		$	8,547
Recoveries	$	688		$	835		$	2,468		$	1,523		$	5,637
Net loan charge-offs to total loans ^2 7		0.2	%		0.2	%		0.2	%		0.2	%		0.3	%
Allowance for credit losses	$	22,084		$	22,084		$	30,294		$	22,084		$	30,294
Allowance for credit losses to total loans ^8		1.00	%		1.01	%		1.31	%		1.00	%		1.31	%
Nonperforming loans	$	23,099		$	7,546		$	13,646		$	23,099		$	13,646
Nonperforming loans to total loans		1.0	%		0.3	%		0.6	%		1.0	%		0.6	%
Mortgage Company Equity Method Investees Production Data^9:
Mortgage pipeline	$	927,875		$	790,771		$	748,756		$	927,875		$	748,756
Loans originated	$	1,383,405		$	1,050,089		$	1,167,596		$	2,433,494		$	2,167,711
Loans closed	$	828,849		$	653,306		$	820,665		$	1,482,155		$	1,495,882
Loans sold	$	639,035		$	916,115		$	786,469		$	1,555,150		$	1,221,723
^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 19. ^2 Annualized for the quarterly periods presented. ^3Net 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, a non-U.S. GAAP measure. ^6 Noninterest expense as a percentage of average assets, a non-U.S. GAAP measure. ^7 Charge-offs, less recoveries. ^8 Excludes loans held-for-sale. ^9Information 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 Margin on a Fully Tax-Equivalent Basis   The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:
	Three Months Ended									Six Months Ended
(Dollars in thousands)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Net interest margin - U.S. GAAP basis
Net interest income	$	27,570		$	30,139		$	29,582		$	57,709		$	62,311
Average interest-earning assets	$	2,973,188		$	3,185,401		$	3,149,924			3,079,294			3,096,689
Net interest margin		3.73	%		3.81	%		3.77	%		3.77	%		4.06	%
Net interest margin - non-U.S. GAAP basis
Net interest income	$	27,570		$	30,139		$	29,582		$	57,709		$	62,311
Impact of fully tax-equivalent adjustment		151			194			250			345			535
Net interest income on a fully tax-equivalent basis	$	27,721		$	30,333		$	29,832			58,054			62,846
Average interest-earning assets	$	2,973,188		$	3,185,401		$	3,149,924		$	3,079,294		$	3,096,689
Net interest margin on a fully tax-equivalent basis		3.75	%		3.83	%		3.80	%		3.79	%		4.09	%

Non-U.S. GAAP Reconciliation: Tangible Book Value per Common Share and Tangible Common Equity Ratio (Unaudited) (Dollars in thousands, except per share data)
	June 30, 2024			March 31, 2024			June 30, 2023
Tangible Book Value per Common Share
Goodwill	$	2,838		$	2,838		$	2,838
Intangibles		307			330			397
Total intangibles	$	3,145			3,168			3,235
Total equity attributable to parent	$	296,625			291,850			274,349
Less: Total intangibles		(3,145	)		(3,168	)		(3,235	)
Tangible common equity	$	293,480		$	288,682		$	271,114
Tangible common equity	$	293,480		$	288,682		$	271,114
Common shares outstanding (000s)		12,928			12,841			12,720
Tangible book value per common share	$	22.70		$	22.48		$	21.31
Tangible Common Equity Ratio
Total assets	$	3,288,004		$	3,547,390		$	3,351,847
Less: Total intangibles		(3,145	)		(3,168	)		(3,235	)
Tangible assets	$	3,284,859		$	3,544,222		$	3,348,612
Tangible assets	$	3,284,859		$	3,544,222		$	3,348,612
Tangible common equity	$	293,480		$	288,682		$	271,114
Tangible common equity ratio		8.9	%		8.1	%		8.1	%