MVB FINANCIAL CORP
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
MVBF$25.91+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001277902-25-000084
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001277902-25-000168
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 122 current paragraphs.
64 unchanged; 36 reworded; 17 added; 3 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 6 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Our net income for the three months ended June 30, 2025 was $2.0 million compared to $4.1 million for the three months ended June 30, 2024. Earnings for the three months ended June 30, 2025 equated to a return on average assets of 0.3% and a return on average equity of 2.6%, compared to the three months ended June 30, 2024 results of 0.5% and 5.7%, respectively. Basic and diluted earnings per share were $0.16 and $0.15 for the three months ended June 30, 2025, respectively, compared to $0.32 and $0.31, respectively, for the three months ended June 30, 2024. Our results for the three months ended June 30, 2025 included a $2.0 million provision for credit losses primarily due to loan growth during the quarter, compared to a $0.3 million provision for credit losses for the three months ended June 30, 2024. Our loan growth during the three months ended June 30, 2025 occurred late in the quarter, resulting in provisioning without the benefit of corresponding interest income.
Current report
During the six months ended June 30, 2025, net interest income decreased $5.2 million, noninterest income remained consistent at $15.0 million and noninterest expense decreased by $1.8 million compared to the six months ended June 30, 2024. The decrease in our net interest income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 can primarily be attributed to a decrease in average loans with the loan growth during the six months ended June 30, 2025 occurring late in the second quarter. Our yield on tax-equivalent earning assets for the six months ended June 30, 2025 was 5.98% compared to 6.30% for the six months ended June 30, 2024. Loans receivable increased by $53.2 million to $2.15 billion during the six months ended June 30, 2025. Our overall cost of interest-bearing liabilities was 3.59% for the six months ended June 30, 2025 compared to 4.19% for the six months ended June 30, 2024. This cost of interest-bearing liabilities, combined with the earning asset yield, resulted in a tax-equivalent net interest margin of 3.67% in the six months ended June 30, 2025, compared to 3.79% in the six months ended June 30, 2024.
Current report
3 The senior term loan was paid off in May 2024 and the unamortized debt issuance costs were recorded as interest expense upon the repayment.
Current report
3 The senior term loan was paid off in May 2024 and the unamortized debt issuance costs were recorded as interest expense upon the repayment.
Current report
During the three months ended June 30, 2025, net interest income declined $1.8 million, or 6.5%, to $25.8 million from $27.6 million during the three months ended June 30, 2024. Average total earning assets were $2.82 billion as of June 30, 2025, compared to $2.97 billion as of June 30, 2024. Total interest income declined by $3.7 million, or 8.1%, to $42.4 million in the three months ended June 30, 2025 from $46.1 million in the three months ended June 30, 2024, primarily reflecting lower interest income from decreased interest rates and balances of loans and cash, partially offset by higher interest income on investment securities balances due to higher rates earned on these investments and a higher overall balance of investment securities. Average total loans declined to $2.09 billion as of June 30, 2025 from $2.24 billion as of June 30, 2024, primarily as the result of a $108.7 million decline in average commercial loans, a $24.4 million decline in average real estate loans and a $12.5 million decline in average consumer loans. As previously discussed, our loan growth during the three months ended June 30, 2025 occurred later in the quarter.
Current report
Net interest margin on a tax-equivalent basis was 3.67% for the six months ended June 30, 2025 compared to 3.79% for the six months ended June 30, 2024. The decrease in net interest margin on a tax-equivalent basis primarily reflects a decline in earning asset yields, partially offset by lower funding costs. Tax-equivalent net interest spread was 2.39% for the six months ended June 30, 2025 compared to 2.11% for the six months ended June 30, 2024. The difference between the tax-equivalent net interest margin and tax-equivalent net interest spread was 128 basis points in the six months ended June 30, 2025 compared to 168 basis points in the six months ended June 30, 2024. This difference was driven by the decrease in interest expense and the decline in average assets.
Current report
During the six months ended June 30, 2025, net interest income decreased by $5.3 million, or 9.1%, to $52.5 million from $57.7 million during the six months ended June 30, 2024. This decrease is largely due to lower yields on earning assets, partially offset by a decrease in the cost of funds. Average total earning assets were $2.90 billion in the six months ended June 30, 2025 compared to $3.08 billion in the six months ended June 30, 2024. Total interest income declined by $10.5 million, or 11.0%, to $85.6 million in the six months ended June 30, 2025 from $96.2 million in the six months ended June 30, 2024, primarily reflecting lower interest income from decreased interest rates and balances of loans and cash, partially offset by higher interest income on investment securities balances due to higher rates earned on these investments and a higher overall balance of investment securities. Average total loans decreased to $2.10 billion in the six months ended June 30, 2025 from $2.26 billion in the six months ended June 30, 2024, primarily as the result of a $121.4 million decrease in average commercial loans, a $27.2 million decrease in average real estate loans and a $13.4 million decrease in average consumer loans.
Current report
Average interest-bearing liabilities increased by $18.3 million for the six months ended June 30, 2025 from the six months ended June 30, 2024. The increase was primarily the result of average balance increases of $78.8 million in negotiable order of withdrawal accounts and $32.7 million in certificates of deposit, partially offset by declines of $57.1 million in money market checking accounts and $34.3 million in saving accounts.
Current report
Average interest-bearing deposits were $1.78 billion for the six months ended June 30, 2025 and $1.76 billion for the six months ended June 30, 2024. Total interest expense decreased by $5.3 million, primarily driven by decreases in interest rates. The cost of interest-bearing liabilities decreased to 3.59% in the six months ended June 30, 2025 from 4.19% in the six months ended June 30, 2024.
Current report
Provision for credit losses totaled $2.0 million for the three months ended June 30, 2025, compared to $0.3 million in the three months ended June 30, 2024. This increase in provision is due primarily to increases in loan balances, which increased $90.0 million during the three months ended June 30, 2025. This loan growth resulted in an additional $1.4 million in provision required. Additionally, increases in the allocation rates made by the allowance model and specific reserves required by individually analyzed loans required an additional $0.2 million in provision. Provision for unfunded commitments totaled $0.2 million and $0.1 million during the three months ended June 30, 2025 and 2024, respectively. Net charge-offs totaled $0.2 million and $0.9 million during the three months ended June 30, 2025 and 2024, respectively.
Current report
Provision for credit losses totaled $2.2 million during the six months ended June 30, 2025, compared to $2.3 million in the six months ended June 30, 2024. Loan balances increased $53.2 million during the six months ended June 30, 2025. This loan growth resulted in an additional $0.6 million in provision required. Additionally, increases in the allocation rates made by the allowance model and increases specific reserves required by individually analyzed loans required an additional $0.6 million in provision. Provision for unfunded commitments was immaterial and totaled $0.1 million during the six months ended June 30, 2025 and 2024, respectively. Net charge-offs totaled $1.0 million and $2.2 million during the six months ended June 30, 2025 and 2024, respectively.
Current report
Noninterest income totaled $7.9 million for the three months ended June 30, 2025, an increase of $0.8 million from $7.1 million for the three months ended June 30, 2024. The increase was primarily the result of a $1.8 million increase in equity method investment income from our mortgage segment and a $0.8 million increase in payment card and service charge income, partially offset by declines of $1.3 million in compliance and consulting income, $0.4 million in holding gain on equity securities and $0.2 million in other operating income.
Current report
Noninterest income totaled $15.0 million for the six months ended June 30, 2025, consistent with the six months ended June 30, 2024. The $3.6 million increase in equity method investment income from our mortgage segment, $1.0 million increase in payment card and service charge income and $0.6 million gain on divestiture activity were offset by a $1.9 million decline in other operating income, a $1.8 million decline in compliance consulting income, a $0.6 million decline in gain on sale of available-for-sale investment securities and a $0.6 million holding loss on equity securities.
Current report
Noninterest expense was $57.3 million and $59.1 million for the six months ended June 30, 2025 and 2024, respectively. The decline from the prior year period primarily reflects declines of $3.9 million in professional fees, $0.6 million in equipment depreciation and maintenance expense and $0.2 million in salaries and employee benefits. These declines were partially offset by increases of $1.3 million in other operating expenses, $0.8 million in occupancy expense and $0.7 million in travel, entertainment, dues and subscriptions. Approximately 56.2% and 54.9% of noninterest expense for the six months ended June 30, 2025 and 2024, respectively, was related to personnel costs. Personnel costs are a significant part of our noninterest expense, as such costs are critical to financial services organizations.
Current report
Our return on average assets was 0.3% for the six months ended June 30, 2025, compared to 0.5% for the six months ended June 30, 2024. The increased return for the six months ended June 30, 2025 is primarily the result of a decrease of $178.0 million in average total assets, mainly the result of a a $121.4 million decrease in average commercial loans, a $76.5 million decrease in average interest-bearing deposits with banks, a $27.2 million decrease in average real estate loans and a $13.4 million decrease in average consumer loans, partially offset by $61.6 million increase in average investment securities. This decrease in average total assets was offset by a $3.0 million decrease in earnings.
Current report
Our return on average stockholders’ equity was 3.7% for the six months ended June 30, 2025, compared to 5.9% for the six months ended June 30, 2024. The lower return for the six months ended June 30, 2025 is a result of a $3.0 million decrease in earnings, while average equity increased by $16.5 million.
Current report
Deposits remain the most significant source of funds, totaling $2.80 billion, or 97.2% of funding sources at June 30, 2025. This same information at December 31, 2024 reflected $2.69 billion in deposits representing 97.2% of funding sources. Of these amounts, Fintech deposits totaled $1.16 billion and $964.1 million at June 30, 2025 and December 31, 2024, respectively. The increase in Fintech deposits is primarily attributable to increases in banking-as-a-service and digital asset deposits from $208.1 million and $22.6 million at December 31, 2024, respectively, to $308.3 million and $216.2 million at June 30, 2025, respectively. The increase in banking-as-a-service is primarily the result of on-balance sheet deposit management, while the increase in digital asset deposits to due to the acquisition of a new client.
Removed paragraphs (3)
Previous report
During the three months ended March 31, 2025, net interest income declined $3.5 million, or 11.5%, to $26.7 million from $30.1 million during the three months ended March 31, 2024. Average total earning assets were $2.98 billion as of March 31, 2025, compared to $3.19 billion as of March 31, 2024. Total interest income declined by $6.8 million, or 13.6%, to $43.2 million in the three months ended March 31, 2025 from $50.0 million in the three months ended March 31, 2024, primarily due to declines in cash balances, driven by the exit of digital asset program accounts during the second quarter of 2024, and lower loan balances, partially offset by higher investment security balances. Average total loans declined to $2.10 billion as of March 31, 2025 from $2.28 billion as of March 31, 2024, primarily as the result of a $134.0 million decline in average commercial loans, a $30.0 million decline in average real estate loans and a $14.3 million decline in average consumer loans. These declines primarily reflect slower loan growth based on overall market conditions and the impact of loan amortization and payoffs. The yield on total loans declined 33 basis points.
Previous report
Total loans decreased $36.8 million during the three months ended March 31, 2025, compared to a decrease of $50.3 million in the three months ended March 31, 2024. The decline in loan balances compared to the prior quarter primarily reflects the amortization of the loan portfolio and a purposeful effort to improve the overall strength of the loan portfolio through selective originations and a focus on reducing criticized assets. The commercial loan portfolio decreased by $25.0 million during the three months ended March 31, 2025, as compared to a decrease of $34.0 million in the three months ended March 31, 2024, while the residential mortgage loan portfolio decreased by $8.2 million during the three months ended March 31, 2025, as compared to a $12.1 million decrease during the three months ended March 31, 2024. Additionally, our consumer loan portfolio decreased by $1.9 million during the three months ended March 31, 2025, while it decreased by $2.7 million in the three months ended March 31, 2024. Net charge-offs totaled $0.9 million and $1.3 million during the three months ended March 31, 2025 and 2024, respectively.
Previous report
Noninterest income for the three months ended March 31, 2025 and 2024 totaled $7.0 million and $7.8 million, respectively. The decline in noninterest income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily the result of a $1.6 million decline in other operating income and a $0.7 million decline on gain on sale of available-for-sale investment securities. Partially offsetting these declines was $0.6 million in equity method investments income from our mortgage segment for the three months ended March 31, 2025, compared to a loss of $1.1 million in the three months ended March 31, 2024, and a $0.6 million gain on divestiture activity related to our sale of Trabian during three months ended March 31, 2025.
Reworded paragraphs (36)
Previous wording
We continue to adapt our business model due to challenging market conditions, primarily due to the current high interest rate environment and a slowing economy, as well as consideration of regulatory and geopolitical environments, among others. Interest rates have remained at an elevated level through March 31, 2025, although the Federal Reserve did reduce its key interest rate to a range of 4.25% to 4.5% in December 2024. Lower loan balances are the result of slower market demand, the impact of loan amortization and payoffs and slower loan growth based on overall market conditions and portfolio management. We remain committed to the gaming, payments and banking-as-a-service industries. We continue to expand the Bank's treasury services function to support the banking needs of financial and emerging technology companies, which we believe will further enhance core deposits, notably through the expansion of deposit acquisition and fee income strategies through the Fintech division. Additionally, we have expanded our compliance and risk management team to support the growth in these lines of business.
Current wording
We continue to adapt our business model due to challenging market conditions, primarily due to the current interest rate environment and economy, as well as consideration of regulatory and geopolitical environments, among others. Interest rates have remained at an elevated level through June 30, 2025, as the Federal Reserve has maintained its federal funds interest rate range of 4.25% to 4.5%. However, we have seen an increase in loan balances compared to the prior quarter, which primarily reflects the Bank's execution of its asset generation strategies that include the diversification of risk among loans with relatively smaller loan balances, as well as a focus on loans with fixed interest rates. We remain committed to the gaming, payments and banking-as-a-service industries. We continue to expand the Bank's treasury services function to support the banking needs of financial and emerging technology companies, which we believe will further enhance CoRe deposits, notably through the expansion of deposit acquisition and fee income strategies through the Fintech division. Additionally, we have expanded our compliance and risk management team to support the growth in these lines of business.
Previous wording
During the three months ended March 31, 2025, net interest income declined $3.5 million, noninterest income declined $0.8 million and noninterest expenses declined $1.5 million compared to the three months ended March 31, 2024. Our tax-equivalent yield on earning assets in the three months ended March 31, 2025 was 5.91% compared to 6.34% in the three months ended March 31, 2024. Loans receivable declined $36.8 million to $2.06 billion during the three months ended March 31, 2025. Our overall cost of interest-bearing liabilities was 3.71% in the three months ended March 31, 2025 compared to 4.22% in the three months ended March 31, 2024. This cost of interest-bearing liabilities, combined with the earning asset yield, resulted in a tax-equivalent net interest margin of 3.66% in the three months ended March 31, 2025, compared to 3.83% in the three months ended March 31, 2024.
Current wording
During the three months ended June 30, 2025, net interest income declined $1.8 million, noninterest income increased $0.8 million and noninterest expense declined $0.4 million compared to the three months ended June 30, 2024. Our tax-equivalent yield on earning assets for the three months ended June 30, 2025 was 6.04% compared to 6.26% for the three months ended June 30, 2024. Loans receivable increased $90.0 million to $2.15 billion during the three months ended June 30, 2025. Our overall cost of interest-bearing liabilities was 3.55% for the three months ended June 30, 2025 compared to 4.15% for the three months ended June 30, 2024. This cost of interest-bearing liabilities, combined with the earning asset yield, resulted in a tax-equivalent net interest margin of 3.69% in the three months ended June 30, 2025, compared to 3.75% in the three months ended June 30, 2024.
Previous wording
Our net income for the three months ended March 31, 2025 was $3.6 million compared to $4.5 million in the three months ended March 31, 2024. Earnings for the three months ended March 31, 2025 equated to a return on average assets of 0.4% and a return on average equity of 4.7%, compared to the three months ended March 31, 2024 results of 0.5% and 6.2%, respectively. Basic and diluted earnings per share were $0.28 and $0.27 for the three months ended March 31, 2025, respectively, compared to $0.35 and $0.34, respectively, for the three months ended March 31, 2024.
Current wording
Our net income for the six months ended June 30, 2025 was $5.6 million compared to $8.6 million in the six months ended June 30, 2024. Earnings for the six months ended June 30, 2025 equated to a return on average assets of 0.3% and a return on average equity of 3.7%, compared to the six months ended June 30, 2024 results of 0.5% and 5.9%, respectively. Basic and diluted earnings per share were $0.43 and $0.42, respectively, for the six months ended June 30, 2025, compared to $0.67 and $0.66, respectively, for the six months ended June 30, 2024.
Previous wording
Tangible book value (“TBV”) per common share was $23.85 and $22.48 as of March 31, 2025 and March 31, 2024, respectively. TBV per common share is a non-U.S. GAAP measure that we believe is helpful to interpreting financial results. A reconciliation of TBV per common share is included below.
Current wording
Tangible book value (“TBV”) per common share was $23.68 and $22.70 as of June 30, 2025 and June 30, 2024, respectively. TBV per common share is a non-U.S. GAAP measure that we believe is helpful to interpreting financial results. A reconciliation of TBV per common share is included below.
Previous wording
Net interest income is the amount by which interest income on earning assets exceeds interest expense incurred on interest-bearing liabilities. Interest-earning assets include loans, investment securities and certificates of deposit in banks. Interest-bearing liabilities include interest-bearing deposits and borrowed funds such as sweep accounts, repurchase agreements and subordinated debt. Net interest income, which is the primary source of revenue for the Bank, is also impacted by changes in market interest rates and the mix of interest-earning assets and interest-bearing liabilities.
Current wording
Net interest income is the amount by which interest income on earning assets exceeds interest expense incurred on interest-bearing liabilities. Interest-earning assets include loans and investment securities. Interest-bearing liabilities include interest-bearing deposits and borrowed funds such as sweep accounts, repurchase agreements and subordinated debt. Net interest income, which is the primary source of revenue for the Bank, is also impacted by changes in market interest rates and the mix of interest-earning assets and interest-bearing liabilities.
Previous wording
In December 2024, the Federal Reserve lowered its key interest rate to a range of 4.25% to 4.5%, which has not changed as of March 31, 2025. We continually analyze methods to deploy assets into an earning asset mix to generate a stronger net interest margin.
Current wording
The Federal Reserve maintains its key interest rate to a range of 4.25% to 4.5%, which has not changed as of June 30, 2025. We continually analyze methods to deploy assets into an earning asset mix to generate a stronger net interest margin.
Previous wording
Net interest margin on a tax-equivalent basis was 3.66% for the three months ended March 31, 2025 compared to 3.83% for the three months ended March 31, 2024. The decline in net interest margin on a tax-equivalent basis primarily reflects a decline in earning asset yields, partially offset by lower funding costs. Tax-equivalent net interest spread was 2.20% for the three months ended March 31, 2025 compared to 2.12% for the three months ended March 31, 2024. The difference between the tax-equivalent net interest margin and tax-equivalent net interest spread was 146 basis points in the three months ended March 31, 2025 compared to 171 basis points in the three months ended March 31, 2024, driven by the decline in average assets.
Current wording
Net interest margin on a tax-equivalent basis was 3.69% for the three months ended June 30, 2025 compared to 3.75% for the three months ended June 30, 2024. The decline in net interest margin on a tax-equivalent basis primarily reflects a decline in earning asset yields, partially offset by lower funding costs. Tax-equivalent net interest spread was 2.49% for the three months ended June 30, 2025 compared to 2.11% for the three months ended June 30, 2024. The difference between the tax-equivalent net interest margin and tax-equivalent net interest spread was 120 basis points in the three months ended June 30, 2025 compared to 164 basis points in the three months ended June 30, 2024, driven by the decline in average assets.
Previous wording
Average investment securities increased $78.0 million as the result of an $81.6 million increase in taxable investments, partially offset by a $3.6 million decline in tax-exempt investments during the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The yield on taxable securities increased 56 basis points, and the yield on tax-exempt securities increased two basis points.
Current wording
Average investment securities increased $46.0 million as the result of an $52.6 million increase in taxable investments, partially offset by a $6.7 million decline in tax-exempt investments during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The yield on taxable securities increased 68 basis points, and the yield on tax-exempt securities increased 74 basis points.
Previous wording
Average interest-bearing liabilities declined $82.0 million, which was primarily the result of average balance declines of $74.2 million in NOW accounts, $73.7 million in savings accounts and $73.0 million in money market checking deposits, partially offset by an increase of $140.2 million in certificates of deposit.
Current wording
Average interest-bearing liabilities increased $80.2 million, which was primarily the result of average balance increases of $192.9 million in negotiable order of withdrawal accounts and $4.9 million in savings accounts, partially offset by an decrease of $74.0 million in certificates of deposit and $41.2 million in money market checking accounts.
Previous wording
Average interest-bearing deposits were $1.73 billion for the three months ended March 31, 2025 and $1.81 billion for the three months ended March 31, 2024. Total interest expense declined $3.3 million, primarily driven by lower interest rates. The cost of interest-bearing liabilities declined to 3.71% in the three months ended March 31, 2025 from 4.22% in the three months ended March 31, 2024.
Current wording
Average interest-bearing deposits were $1.80 billion for the three months ended June 30, 2025 and $1.72 billion for the three months ended June 30, 2024. Total interest expense declined $2.0 million, primarily driven by lower interest rates. The cost of interest-bearing liabilities declined to 3.55% for the three months ended June 30, 2025 from 4.15% for the three months ended June 30, 2024.
Previous wording
The provision for credit losses, which is a product of management’s analysis, is recorded in response to inherent losses in the loan and available-for-sale investment security portfolios. Credit loss provisions were $0.2 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively. The decline in credit loss provisions is the result of a reduction in the required reserve calculated by the pooled loan analysis, driven by both lower loan portfolio balances and lower allocation rates, which was partially offset by higher calculated reserves of individually analyzed loans.
Current wording
The provision for credit losses, which is a product of management’s analysis, is recorded in response to an estimate of lifetime expected losses in the loan and available-for-sale investment security portfolios.
Previous wording
Payment card and service charge income, consulting compliance income, equity method investment income or loss and gains on sale of loans generally account for the majority of our noninterest income. From time to time, we also recognize gains or losses on acquisition and divestiture activity, sales of assets or our investment portfolio.
Current wording
Payment card and service charge income, equity method investment income or loss and gains on sale of loans generally account for the majority of our noninterest income. From time to time, we also recognize gains or losses on acquisition and divestiture activity, sales of assets or our investment portfolio.
Previous wording
Noninterest expense was $28.7 million and $30.2 million in the three months ended March 31, 2025 and 2024, respectively. The decline from the prior period primarily reflects a decline of $2.2 million in professional fees, partially offset by a $0.6 million increase in other operating expenses. Approximately 57.2% and 54.6% of noninterest expense for the three months ended March 31, 2025 and 2024, respectively, was related to personnel costs. Personnel costs are a significant part of our noninterest expense as such costs are critical to financial services organizations.
Current wording
Noninterest expense was $28.6 million and $28.9 million in the three months ended June 30, 2025 and 2024, respectively. The decline from the prior period primarily reflects declines of $1.7 million in professional fees, $0.3 million in equipment depreciation and maintenance and $0.1 million in salaries and employee benefits. These declines were partially offset by increases of $0.7 million in other operating expenses, $0.8 million in travel, entertainment, dues and subscriptions and $0.4 million in occupancy expenses. Approximately 55.3% and 55.1% of noninterest expense for the three months ended June 30, 2025 and 2024, respectively, was related to personnel costs. Personnel costs are a significant part of our noninterest expense as such costs are critical to financial services organizations.
Previous wording
Our return on average assets was 0.4% for the three months ended March 31, 2025, compared to 0.5% for the three months ended March 31, 2024. The lower return for the three months ended March 31, 2025 is the result of a $0.9 million decline in earnings and a decline in average total assets of $208.2 million, which was primarily the result of a $104.4 million decline in average interest-bearing balances with banks, a $134.0 million decline in average commercial loans, a $30.0 million decline in average real estate loans and a $14.3 million decline in average consumer loans, partially offset by a $78.0 million increase in average investment securities.
Current wording
Our return on average assets was 0.3% for the three months ended June 30, 2025, compared to 0.5% for the three months ended June 30, 2024. The lower return for the three months ended June 30, 2025 is the result of a $2.1 million decline in earnings and a decline in average total assets of $146.7 million, which was primarily the result of a $108.7 million decline in average commercial loans, $48.0 million decline in average interest-bearing balances with banks, a $24.4 million decline in average real estate loans and a $12.5 million decline in average consumer loans, partially offset by a $46.0 million increase in average investment securities.
Previous wording
Our return on average stockholders’ equity was 4.7% for the three months ended March 31, 2025, compared to 6.2% for the three months ended March 31, 2024. The lower return for the three months ended March 31, 2025 is a result of a $0.9 million decline in earnings, while average equity increased by $15.3 million.
Current wording
Our return on average stockholders’ equity was 2.6% for the three months ended June 30, 2025, compared to 5.7% for the three months ended June 30, 2024. The lower return for the three months ended June 30, 2025 is a result of a $2.1 million decline in earnings, while average equity increased by $17.6 million.
Previous wording
Cash and cash equivalents totaled $251.5 million at March 31, 2025, compared to $317.9 million at December 31, 2024. We believe the current balance of cash and cash equivalents adequately serves our liquidity and performance needs. Total cash and cash equivalents fluctuate daily due to transactions in process and other liquidity demands.
Current wording
Cash and cash equivalents totaled $399.4 million at June 30, 2025, compared to $317.9 million at December 31, 2024. We believe the current balance of cash and cash equivalents adequately serves our liquidity and performance needs. Total cash and cash equivalents fluctuate daily due to transactions in process and other liquidity demands.
Previous wording
Investment securities, including equity securities, totaled $463.9 million at March 31, 2025, compared to $454.2 million at December 31, 2024. The following table presents a summary of the investment securities portfolio as of the periods shown. The available-for-sale securities are reported at estimated fair value.
Current wording
Investment securities, including equity securities, totaled $440.5 million at June 30, 2025, compared to $453.5 million at December 31, 2024. The following table presents a summary of the investment securities portfolio as of the periods shown. The available-for-sale securities are reported at estimated fair value.
Previous wording
Our loan portfolio totaled $2.06 billion as of March 31, 2025 and $2.10 billion as of December 31, 2024. The Bank’s lending is primarily focused in North Central West Virginia, Northern Virginia, North Carolina and South Carolina. The portfolio consists principally of commercial lending, retail lending, which includes single-family residential mortgages, and consumer lending.
Current wording
Our loan portfolio totaled $2.15 billion as of June 30, 2025 and $2.10 billion as of December 31, 2024. The Bank’s lending is primarily focused in North Central West Virginia, Northern Virginia, North Carolina and South Carolina. The portfolio consists principally of commercial lending, retail lending, which includes single-family residential mortgages, and consumer lending.
Previous wording
At March 31, 2025 and December 31, 2024, commercial and non-residential real estate loans comprised the largest component of the loan portfolio. A large portion of commercial loans are secured by real estate and are diverse in terms of geographical location and industry. Loans that are not secured by real estate are typically secured by accounts receivable, mortgages or equipment. While the loan concentration is in commercial loans, the commercial portfolio is comprised of loans to many different borrowers in numerous different industries, generally located in our primary market areas. Additionally, within the commercial portfolio, loans within the healthcare industry, which include loans to physicians, nursing homes and pharmacies, represent 23% of our total loan portfolio as of March 31, 2025.
Current wording
At June 30, 2025 and December 31, 2024, commercial and non-residential real estate loans comprised the largest component of the loan portfolio. A large portion of commercial loans are secured by real estate and are diverse in terms of geographical location and industry. Loans that are not secured by real estate are typically secured by accounts receivable, mortgages or equipment. While the loan concentration is in commercial loans, the commercial portfolio is comprised of loans to many different borrowers in numerous different industries, generally located in our primary market areas. Additionally, within the commercial portfolio, loans within the healthcare industry, which include loans to physicians, nursing homes and pharmacies, represent 22% of our total loan portfolio as of June 30, 2025.
Previous wording
The ACL was $19.2 million, or 0.93% of loans receivable, at March 31, 2025, compared to $19.7 million, or 0.94% of loans receivable, at December 31, 2024. The commercial real estate, residential and consumer segments reflected a total allowance decrease of $0.6 million over the three months ended March 31, 2025. Additionally, over the three months ended March 31, 2025, changes to the loan portfolio balances, qualitative factor adjustments and expected loss forecasts within the expected credit loss calculation resulted in allowance decreases of $0.4 million to both the commercial acquisition, development and construction segment and the commercial and industrial segment. These decreases were partially offset by an increases of $0.4 million in allowance required by the commercial real estate owner occupied segment and an increase in provision needed for individually analyzed loans of $0.4 million. Bank management expects the markets in which it operates will experience potential economic volatility over the next one to two years and most decreases in estimated loss rates have been further supported by decrease in loan balances in the three months ended March 31, 2025. This results in marginally lower allocation rates against slightly lower loan balances, resulting in an overall lower allowance needed for the pooled loan portfolio. Net charge-offs for the three months ended March 31, 2025 included $0.8 million related to five U.S. SBA loans secured by business assets and $0.1 million related to the ALF consumer automotive segment.
Current wording
The ACL was $20.8 million, or 0.97% of loans receivable, at June 30, 2025, compared to $19.7 million, or 0.94% of loans receivable, at December 31, 2024. Over the six months ended June 30, 2025, changes to the loan portfolio balances, qualitative factor adjustments and expected loss forecasts within the expected credit loss calculations resulted in allowances increases of $1.1 million to the commercial business, commercial real estate and commercial acquisition, development and construction segments. There was a further increase of $0.9 million in provision needed by the individually analyzed segment. These increases were partially offset by a decrease of $0.6 million in allowance required by the residential, home equity lines of credit and consumer segments and reduction of $0.3 million in the unallocated segment. Bank management expects the markets in which it operates will experience potential economic viability over the next one to two years and for the six months ended June 30, 2025 has observed overall increases to both loan balances and allocation rates within the pooled loan portfolio.
Previous wording
Management continually monitors the risk in the loan portfolio by reviewing of the monthly delinquency reports and the Loan Review Committee. The Loan Review Committee is responsible for determining the adequacy of the ACL. This analysis involves the portfolio's experience to date and the makeup of the overall portfolio. Specific loss estimates are derived for individual loans based on specific criteria such as current delinquent status, related deposit account activity, where applicable, and changes in the local and national economy. When appropriate, we also consider public knowledge and verifiable information from the local market to assess risks to specific loans and the loan portfolios as a whole.
Current wording
Management continually monitors the risk in the loan portfolio by reviewing the monthly delinquency reports and through the Loan Review Committee. The Loan Review Committee is responsible for determining the adequacy of the ACL. This analysis involves the portfolio's experience to date and the makeup of the overall portfolio. Specific loss estimates are derived for individual loans based on specific criteria such as current delinquent status, related deposit account activity, where applicable, and changes in the local and national economy. When appropriate, we also consider public knowledge and verifiable information from the local market to assess risks to specific loans and the loan portfolios as a whole.
Previous wording
The Bank considers a number of alternatives including, but not limited to, deposits, short-term borrowings and long-term borrowings, when evaluating funding sources. Deposits remain the most significant source of funds, totaling $2.58 billion, or 97.0% of funding sources at March 31, 2025. This same information at December 31, 2024 reflected $2.69 billion in deposits representing 97.2% of funding sources. Borrowings represented 2.8% of funding sources at March 31, 2025, versus 2.7% at December 31, 2024. Repurchase agreements, which are available to large corporate customers, represented 0.2% of funding sources at March 31, 2025 and 0.1% at December 31, 2024.
Current wording
The Bank considers a number of alternatives including, but not limited to, deposits, short-term borrowings and long-term borrowings, when evaluating funding sources.
Previous wording
At March 31, 2025, noninterest-bearing balances totaled $1.03 billion, compared to $941.0 million at December 31, 2024, or 40.0% and 34.9%, respectively, of total deposits. Interest-bearing deposits totaled $1.55 billion at March 31, 2025, compared to $1.75 billion at December 31, 2024.
Current wording
At June 30, 2025, noninterest-bearing balances totaled $1.05 billion, compared to $941.0 million at December 31, 2024, or 37.4% and 34.9%, respectively, of total deposits. Interest-bearing deposits totaled $1.75 billion at June 30, 2025, compared to $1.75 billion at December 31, 2024.
Previous wording
Average interest-bearing deposits were $1.73 billion during the three months ended March 31, 2025, compared to $1.81 billion during the same time period in 2024 and average noninterest-bearing deposits were $1.13 billion during the three months ended March 31, 2025 compared to $1.28 billion during the same time period in 2024.
Current wording
Average interest-bearing deposits were $1.80 billion during the three months ended June 30, 2025, compared to $1.72 billion during the same time period in 2024 and average noninterest-bearing deposits were $886.7 million during the three months ended June 30, 2025 compared to $1.14 billion during the same time period in 2024.
Previous wording
We utilize a custodial deposit transference structure for certain deposit programs whereby we, acting as custodian of account holder funds, place a portion of such account holder funds that are not needed to support near term settlement at one or more third-party banks insured by the FDIC (each, a program bank). Accounts opened at program banks are established in our name as custodian, for the benefit of our account holders. We remain the issuer of all accounts under the applicable account holder agreements and have sole custodial control and transaction authority over the accounts opened at program banks. We maintain the records of each account holder's deposits maintained at program banks. Program banks undergo robust due diligence prior to becoming a program bank and are also subject to continuous monitoring. These off-balance sheet deposits totaled $1.52 billion at March 31, 2025 and $1.42 billion at December 31, 2024 and primarily represent the gaming and banking-as-a-service industries.
Current wording
We utilize a custodial deposit transference structure for certain deposit programs whereby we, acting as custodian of account holder funds, place a portion of such account holder funds that are not needed to support near term settlement at one or more third-party banks insured by the FDIC (each, a program bank). Accounts opened at program banks are established in our name as custodian, for the benefit of our account holders. We remain the issuer of all accounts under the applicable account holder agreements and have sole custodial control and transaction authority over the accounts opened at program banks. We maintain the records of each account holder's deposits maintained at program banks. Program banks undergo robust due diligence prior to becoming a program bank and are also subject to continuous monitoring. These off-balance sheet deposits totaled $1.11 billion at June 30, 2025 and $1.42 billion at December 31, 2024 and primarily represent the gaming and banking-as-a-service industries.
Previous wording
Along with traditional deposits, the Bank has access to both short-term borrowings from FHLB, Federal Reserve Bank and overnight repurchase agreements to fund its operations and investments.
Current wording
Along with traditional deposits, the Bank has access to both short-term borrowings from the Federal Home Loan Bank ("FHLB"), Federal Reserve Bank and overnight repurchase agreements to fund its operations and investments.
Previous wording
Three of our primary deposit verticals are payments, banking-as-a-service and gaming, with such deposits totaling $489.6 million, $317.0 million and $190.8 million as of March 31, 2025, respectively, compared to $505.8 million, $208.1 million and $227.6 million as of December 31, 2024, respectively. Of the gaming deposits, $158.3 million is with our three largest gaming clients at March 31, 2025.
Current wording
Three of our primary deposit verticals are payments, banking-as-a-service and gaming, with such deposits totaling $437.4 million, $308.3 million and $193.2 million as of June 30, 2025, respectively, compared to $505.8 million, $208.1 million and $227.6 million as of December 31, 2024, respectively. Of the gaming deposits, $183.4 million is with our three largest gaming clients at June 30, 2025.
Previous wording
During the three months ended March 31, 2025, stockholders’ equity increased $4.4 million to $310.1 million. This increase primarily consists of net income of $3.6 million, other comprehensive income of $2.1 million, stock based compensation of $0.8 million and common stock options exercised of $0.1 million, offset by cash dividends paid of $2.2 million.
Current wording
During the six months ended June 30, 2025, stockholders’ equity declined $3.4 million to $302.3 million. This decline primarily consists of the stock repurchase of 314,580 shares for $6.4 million and cash dividends paid of $4.4 million, partially offset by net income of $5.6 million, stock based compensation of $1.8 million and other comprehensive income of $0.4 million.
Previous wording
During the three months ended March 31, 2025, total assets declined $109.0 million. As a result, the equity to assets ratio increased from 9.8% at December 31, 2024 to 10.3% at March 31, 2025. We paid dividends to common shareholders of $2.2 million in the three months ended March 31, 2025 and 2024, respectively, compared to earnings of $3.6 million and $4.5 million in the three months ended March 31, 2025 and 2024, respectively, resulting in the dividend payout ratio increasing to 61.5% in the three months ended March 31, 2025 from 48.7% in the three months ended March 31, 2024.
Current wording
During the six months ended June 30, 2025, total assets increased $95.3 million. The equity to assets ratio declined from 9.8% at December 31, 2024 to 9.4% at June 30, 2025 due to the decline in stockholders’ equity. We paid dividends to common shareholders of $4.4 million during the six months ended June 30, 2025 and 2024, compared to earnings of $5.6 million and $8.6 million during the six months ended June 30, 2025 and 2024, respectively, resulting in the dividend payout ratio increasing to 79.1% for the six months ended June 30, 2025 from 51.0% for the six months ended June 30, 2024.
Previous wording
MVB and the Bank are also subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a material effect on our consolidated financial statements. The Bank is required to comply with applicable capital adequacy standards established by the federal banking agencies. West Virginia state chartered banks, such as the Bank, are subject to similar capital requirements adopted by the West Virginia Division of Financial Institutions. Bank regulators have established “risk-based” capital requirements designed to measure capital adequacy. Risk-based capital ratios reflect the relative risks of various assets companies hold in their portfolios. A weight category of 0% (lowest risk assets), 20%, 50%, 100% or 150% (highest risk assets) is assigned to each asset on the balance sheet. Detailed information concerning our risk-based capital ratios can be found in Supervision and Regulation in Item 1, Business and Note 15 – Regulatory Capital
Current wording
MVB and the Bank are also subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a material effect on our consolidated financial statements. The Bank is required to comply with applicable capital adequacy standards established by the federal banking agencies. West Virginia state chartered banks, such as the Bank, are subject to similar capital requirements adopted by the West Virginia Division of Financial Institutions. Bank regulators have established “risk-based” capital requirements designed to measure capital adequacy. Risk-based capital ratios reflect the relative risks of various assets companies hold in their portfolios. A weight category of 0% (lowest risk assets), 20%, 50%, 100% or 150% (highest risk assets) is assigned to each asset on the balance sheet. Detailed information concerning our risk-based capital ratios can be found in Supervision and Regulation in Item 1, Business and Note 15 – Regulatory Capital Requirements to the consolidated financial statements included in Item 8, Financial Statements and Supplementary Data, of the 2024 Form 10-K.
Previous wording
The optional community bank leverage ratio (“CBLR”) framework, which is issued through interagency guidance, intends to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions as directed under the EGRRCPA. Under the CBLR, if a qualifying depository institution elects to use such measure, such institutions will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios.
Current wording
The optional community bank leverage ratio (“CBLR”) framework, which is issued through interagency guidance, intends to provide a simple alternative measure of capital adequacy for electing qualifying depository institutions as directed under the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under the CBLR, if a qualifying depository institution elects to use such measure, such institutions will be considered well capitalized if its ratio of Tier 1 capital to average total consolidated assets (i.e., leverage ratio) exceeds a 9% threshold, subject to a limited two quarter grace period, during which the leverage ratio cannot go 100 basis points below the then applicable threshold, and will not be required to calculate and report risk-based capital ratios.
Previous wording
The Bank has elected to use the CBLR and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR include the following:
Current wording
The Bank has elected to use the CBLR and intends to utilize this measure for the foreseeable future. Eligibility criteria to utilize the CBLR includes the following:
Previous wording
The Bank's CBLR at March 31, 2025 was 10.9%, which is above the minimum requirement of 9%. Management believes that capital continues to provide a strong base for profitable growth.
Current wording
The Bank's CBLR at June 30, 2025 was 11.4%, which is above the minimum requirement of 9%. Management believes that capital continues to provide a strong base for profitable growth.
Previous wording
Maintenance of a sufficient level of liquidity is a primary objective of the ALCO. Liquidity, as defined by the ALCO, is the ability to meet anticipated operating cash needs, loan demand and deposit withdrawals, without incurring a sustained negative impact on net interest income. It is our policy to optimize the funding of the balance sheet, continually balancing the stability and cost factors of various funding sources. We believe liquidity needs are satisfied by the current balance of cash and cash equivalents, readily available access to traditional and non-traditional funding sources and the portions of the investment and loan portfolios that mature within one year. Our liquid assets totaled $333.9 million as of March 31, 2025. We expect that these sources of funds should enable us to meet cash obligations as they come due.
Current wording
Maintenance of a sufficient level of liquidity is a primary objective of the ALCO. Liquidity, as defined by the ALCO, is the ability to meet anticipated operating cash needs, loan demand and deposit withdrawals, without incurring a sustained negative impact on net interest income. It is our policy to optimize the funding of the balance sheet, continually balancing the stability and cost factors of various funding sources. We believe liquidity needs are satisfied by the current balance of cash and cash equivalents, readily available access to traditional and non-traditional funding sources and the portions of the investment and loan portfolios that mature within one year. Our liquid assets totaled $472.9 million as of June 30, 2025. We expect that these sources of funds should enable us to meet cash obligations as they come due.
Previous wording
The main source of liquidity for the Bank comes through deposit growth. Liquidity is also provided from cash generated from investment maturities, principal payments from loans and income from loans and investment securities. For the three months ended March 31, 2025, cash from operating and investing activities totaled $14.1 million and $31.3 million, respectively, while cash used in financing activities totaled $111.9 million. Significant cash flows during the quarter included outflows of $111.0 million related to the net change in deposits and $32.9 million to purchase available-for-sale investment securities, partially offset by inflows of $27.7 million from proceeds of loan sales and $27.3 million in maturities and paydowns of available-for-sale investment securities.
Current wording
The main source of liquidity for the Bank comes through deposit growth. Liquidity is also provided from cash generated from investment maturities, principal payments from loans and income from loans and investment securities. For the six months ended June 30, 2025, cash from operating and financing activities totaled $21.6 million and $98.8 million, respectively, while cash used in investing activities totaled $38.9 million. Significant cash flows during the quarter included inflows of $109.6 million related to the net change in deposits, $59.3 million in maturities and paydowns of available-for-sale investment securities and $29.5 million in proceeds from sales of available-for-sale investment securities, partially offset by outflows of $83.5 million related to the net change in loans and $74.4 million to purchase available-for-sale investment securities.
Previous wording
We believe that the current economic climate in our primary market areas reflects economic climates that are consistent with the general national economic climate. Unemployment in the United States was 4.2% for March 2025 and 3.9% for March 2024.
Current wording
We believe that the current economic climate in our primary market areas reflects economic climates that are consistent with the general national economic climate. Unemployment in the United States was 4.4% for June 2025 and 4.3% for June 2024.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
1 In 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 six months ended June 30, 2025 and 2024, 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 U.S. GAAP financial measure following this table.
Current report — wording carried from elsewhere
2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
Current report — wording carried from elsewhere
Average investment securities increased $61.6 million as the result of a $67.1 million increase in taxable investments, partially offset by a $5.5 million decrease in tax-exempt investments during the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The yield on taxable securities increased 62 basis points and the tax-exempt securities yield increased 39 basis points.
Current report — wording carried from elsewhere
Borrowings represented 2.6% of funding sources at June 30, 2025, versus 2.7% at December 31, 2024. Repurchase agreements, which are available to large corporate customers, represented 0.1% of funding sources at June 30, 2025 and December 31, 2024.
Current report — wording carried from elsewhere
Average interest-bearing deposits were $1.78 billion during the six months ended June 30, 2025 compared to $1.76 billion during the same time period in 2024 and average noninterest-bearing deposits were $0.99 billion during the six months ended June 30, 2025 compared to $1.21 billion during the same time period in 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Requirements to the consolidated financial statements included in Item 8, Financial Statements and Supplementary Data, of the 2024 Form 10-K.