MVB Financial Corp. Reports Mixed Q3 Results, Net Income Down 43%

MVB Financial Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. Total cash and cash equivalents increased significantly to $610.9 million from $398.2 million at the end of 2023. Total assets rose to $3.42 billion, up from $3.31 billion, while total deposits also saw an increase, reaching $3.00 billion compared to $2.90 billion at the end of 2023.

For the three months ended September 30, 2024, total interest income was $46.6 million, a decrease from $48.3 million in the same period of 2023. Total interest expense rose to $20.0 million from $18.5 million, leading to a net interest income of $26.6 million, down from $29.9 million year-over-year. The net interest margin also declined to 3.61% from 3.90%. For the nine months, net interest income decreased to $84.3 million from $92.2 million, while total interest income increased slightly to $142.8 million from $140.1 million.

Noninterest income for the third quarter increased to $6.7 million from $5.8 million, driven by higher payment card and service charge income. For the nine months, noninterest income rose to $21.6 million from $15.3 million. Total noninterest expenses decreased to $29.5 million from $30.7 million in the third quarter of 2023, and for the nine months, they slightly declined to $88.6 million from $89.3 million.

Net income from continuing operations for the third quarter was $2.2 million, down from $3.9 million in the prior year, while for the nine months, net income decreased to $10.8 million from $23.1 million. Earnings per share for the third quarter were $0.16, compared to $0.30 in 2023, and for the nine months, they fell to $0.83 from $1.84.

The company’s loan portfolio decreased to $2.17 billion from $2.32 billion at the end of 2023, with notable declines in commercial and residential loans. The Allowance for Credit Losses (ACL) was $21.5 million, down from $22.1 million, reflecting a decrease in net charge-offs to $0.7 million for the third quarter from $5.9 million in the same period last year.

Strategically, MVB Financial completed the sale of its subsidiary, Chartwell, in February 2023, and entered into an agreement with Flexia Payments in May 2023, resulting in a loss of $1.1 million. The company continues to focus on its core banking and fintech operations, serving clients primarily in the gaming, payments, and banking-as-a-service sectors.