MVB FINANCIAL CORP

Previous 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. The Federal Reserve lowered its federal funds interest rate range from 3.50% to 3.75% in December 2025. Higher loan balances primarily reflect 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.

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. The Federal Reserve increased its federal funds interest rate range from 3.50% to 3.75% in December 2025 to 3.75% to 4.00% in September 2026. Higher loan balances primarily reflect 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 enhanced our compliance and risk management team to support the growth in these lines of business.

Previous wording

During the three months ended June 30, 2026, net interest income increased $6.5 million, noninterest income increased $10.9 million and noninterest expense increased $1.8 million compared to the three months ended June 30, 2025. The tax-equivalent yield on earning assets for the three months ended June 30, 2026 was 6.25% compared to 6.04% for the three months ended June 30, 2025. Loans receivable increased $72.7 million to $2.48 billion during the three months ended June 30, 2026. The cost of interest-bearing liabilities was 3.20% for the three months ended June 30, 2026 compared to 3.55% at June 30, 2025. The tax-equivalent net interest margin was 4.16% for the three months ended June 30, 2026, compared to 3.69% for the three months ended June 30, 2025. The tax-equivalent net interest margin for the three months ended June 30, 2026 includes $2.3 million of non-recurring net interest income.

Current wording

During the three months ended September 30, 2026, net interest income increased $6.0 million, noninterest income declined $26.8 million and noninterest expense declined $3.5 million compared to the three months ended September 30, 2025. Our results for the three months ended September 30, 2025 included a $34.1 million pre-tax gain on the sale of Victor and a $7.6 million loss on the sale of available-for-sale securities associated with a strategic repositioning of our investment portfolio. The tax-equivalent yield on earning assets for the three months ended September 30, 2026 was 6.06% compared to 5.90% for the three months ended September 30, 2025. Loans receivable increased $43.8 million to $2.52 billion during the three months ended September 30, 2026. The cost of interest-bearing liabilities was 3.16% for the three months ended September 30, 2026 compared to 3.38% at September 30, 2025. The tax-equivalent net interest margin was 4.02% for the three months ended September 30, 2026, compared to 3.55% for the three months ended September 30, 2025.

Previous wording

Net income for the three months ended June 30, 2026 was $12.3 million compared to $2.0 million for the three months ended June 30, 2025. Net income for the three months ended June 30, 2026 includes a $10.0 million pre-tax gain related to an existing Fintech investment recognized in the second quarter. Net income for the three months ended June 30, 2026 resulted in a return on average assets of 1.4% and a return on average equity of 14.3%, compared to 0.3% and 2.6%, respectively, for the three months ended June 30, 2025. Basic and diluted earnings per share were $0.95 and $0.93, respectively, for the three months ended June 30, 2026, compared to $0.16 and $0.15, respectively, for the three months ended June 30, 2025. The provision for credit losses was $4.7 million for the three months ended June 30, 2026, inclusive of $2.6 million of provision related to loan growth in the quarter, compared to a $2.0 million provision for credit losses for the three months ended June 30, 2025.

Current wording

Net income for the three months ended September 30, 2026 was $0.4 million compared to $17.1 million for the three months ended September 30, 2025. Net income for the three months ended September 30, 2026 resulted in a return on average assets of 0.0% and a return on average equity of 0.5%, compared to 2.1% and 22.9%, respectively, for the three months ended September 30, 2025. Basic and diluted earnings per share were $0.03 and $0.03, respectively, for the three months ended September 30, 2026, compared to $1.36 and $1.32, respectively, for the three months ended September 30, 2025. The provision for credit losses was $9.9 million for the three months ended September 30, 2026, including $4.6 million of provision expense related to one land loan, compared to a $4.4 million provision for credit losses for the three months ended September 30, 2025.

Previous wording

During the six months ended June 30, 2026, net interest income increased $8.3 million, noninterest income increased $12.1 million and noninterest expense increased $1.3 million compared to the six months ended June 30, 2025. The yield on tax-equivalent earning assets for the six months ended June 30, 2026 was 6.06% compared to 5.98% for the six months ended June 30, 2025. Loans receivable increased by $133.2 million to $2.48 billion during the six months ended June 30, 2026. The cost of interest-bearing liabilities was 3.18% for the six months ended June 30, 2026 compared to 3.59% at June 30, 2025. The tax-equivalent net interest margin was 3.94% for the six months ended June 30, 2026, compared to 3.67% for the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2026, net interest income increased $14.3 million, noninterest income declined $14.7 million and noninterest expense declined $2.2 million compared to the nine months ended September 30, 2025. Our results for the nine months ended September 30, 2026 included a $10.0 million pre-tax gain related to an existing Fintech investment recognized in the second quarter. Our results for the nine months ended September 30, 2025 included a previously mentioned $34.1 million pre-tax gain on the sale of Victor and a $7.6 million loss on the sale of available-for-sale securities associated with a strategic repositioning of our investment portfolio. The yield on tax-equivalent earning assets for the nine months ended September 30, 2026 was 6.06% compared to 5.95% for the nine months ended September 30, 2025. Loans receivable increased by $260.8 million to $2.52 billion during the nine months ended September 30, 2026. The cost of interest-bearing liabilities was 3.21% for the nine months ended September 30, 2026 compared to 3.51% at September 30, 2025. The tax-equivalent net interest margin was 3.97% for the nine months ended September 30, 2026, compared to 3.63% for the nine months ended September 30, 2025.

Previous wording

Net income for the six months ended June 30, 2026 was $17.4 million compared to $5.6 million for the six months ended June 30, 2025. Net income for the six months ended June 30, 2026 includes a $10.0 million pre-tax gain related to an existing Fintech investment recognized in the second quarter. Net income for the six months ended June 30, 2026 resulted in a return on average assets of 1.0% and a return on average equity of 10.2%, compared to 0.3% and 3.7%, respectively, for the six months ended June 30, 2025. Basic and diluted earnings per share were $1.36 and $1.32, respectively, for the six months ended June 30, 2026, compared to $0.43 and $0.42, respectively, for the six months ended June 30, 2025. The tax-equivalent net interest margin for the six months ended June 30, 2026 includes $2.3 million of non-recurring net interest income.

Current wording

Net income for the nine months ended September 30, 2026 was $17.9 million compared to $22.7 million for the nine months ended September 30, 2025. Net income for the nine months ended September 30, 2026 resulted in a return on average assets of 0.7% and a return on average equity of 7.0%, compared to 0.9% and 10.0%, respectively, for the nine months ended September 30, 2025. Basic and diluted earnings per share were $1.39 and $1.35, respectively, for the nine months ended September 30, 2026, compared to $1.77 and $1.73, respectively, for the nine months ended September 30, 2025. The tax-equivalent net interest margin for the nine months ended September 30, 2026 includes $2.3 million of non-recurring net interest income.

Previous wording

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, 2026 and 2025, 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 wording

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 nine months ended September 30, 2026 and 2025, 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.

Previous wording

Tangible book value (“TBV”) per common share was $26.52 and $23.68 as of June 30, 2026 and June 30, 2025, respectively. TBV per common share is a non-U.S. GAAP financial 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 $25.26 and $25.98 as of September 30, 2026 and September 30, 2025, respectively. TBV per common share is a non-U.S. GAAP financial measure that we believe is helpful to interpreting financial results. A reconciliation of TBV per common share is included below.

Previous wording

Net interest margin on a tax-equivalent basis was 4.16% for the three months ended June 30, 2026 compared to 3.69% for the three months ended June 30, 2025. The increase in net interest margin on a tax-equivalent basis primarily reflects a decline in funding costs and an increase in earning asset yields.

Current wording

Net interest margin on a tax-equivalent basis was 4.02% for the three months ended September 30, 2026 compared to 3.55% for the three months ended September 30, 2025. The increase in net interest margin on a tax-equivalent basis primarily reflects a decline in funding costs and an increase in earning asset yields.

Previous wording

During the three months ended June 30, 2026, net interest income increased by $6.5 million or 25.2% to $32.3 million from $25.8 million during the three months ended June 30, 2025. This increase was largely due to a decrease in cost of funds and an increase in yields on earning assets. Average total earning assets were $3.13 billion as of June 30, 2026, compared to $2.82 billion as of June 30, 2025. Total interest income increased by $6.2 million, or 14.6%, to $48.6 million for the three months ended June 30, 2026 from $42.4 million for the three months ended June 30, 2025, primarily reflecting higher average loan balances, partially offset by lower interest rates. Average total loans increased to $2.44 billion in the three months ended June 30, 2026 from $2.09 billion in the three months ended June 30, 2025, primarily as the result of a $313.2 million increase in average commercial loans and a $89.6 million increase in average consumer loans, partially offset by a $48.6 million decrease in average real estate loans.

Current wording

During the three months ended September 30, 2026, net interest income increased by $6.0 million, or 22.7%, to $32.6 million from $26.6 million during the three months ended September 30, 2025. This increase was largely due to a decrease in cost of funds and an increase in yields on earning assets. Average total earning assets were $3.23 billion as of September 30, 2026, compared to $2.99 billion as of September 30, 2025. Total interest income increased by $4.9 million, or 11.1%, to $49.1 million for the three months ended September 30, 2026 from $44.2 million for the three months ended September 30, 2025, primarily reflecting higher average loan balances, partially offset by lower interest rates. Average total loans increased to $2.46 billion in the three months ended September 30, 2026 from $2.18 billion in the three months ended September 30, 2025, primarily as the result of a $192.3 million increase in average commercial loans, a $47.9 million increase in average real estate loans and a $37.8 million increase in average consumer loans.

Previous wording

Average investment securities increased $25.8 million as the result of a $66.3 million increase in taxable investments, partially offset by a $40.5 million decrease in tax-exempt investments during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The yield on taxable securities increased 146 basis points, and the yield on tax-exempt securities increased 46 basis points.

Current wording

Average investment securities increased $47.5 million as the result of a $80.3 million increase in taxable investments, partially offset by a $32.8 million decrease in tax-exempt investments during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The yield on taxable securities increased 122 basis points, and the yield on tax-exempt securities increased 66 basis points.

Previous wording

Average interest-bearing liabilities increased $167.0 million, primarily driven by a $185.0 million increase in average interest-bearing deposits and a $20.0 million increase in the average balance of the revolving line of credit, which was entered into during the first quarter of 2026. These increases were partially offset by a $39.8 million decrease in the average balance of subordinated debt resulting from the $40.0 million redemption during the first quarter of 2026.

Current wording

Average interest-bearing liabilities increased $6.4 million, primarily driven by a $25.9 million increase in average interest-bearing deposits and a $20.0 million increase in the average balance of the revolving line of credit, which was entered into during the first quarter of 2026. These increases were partially offset by a $39.9 million decrease in the average balance of subordinated debt resulting from the $40.0 million redemption during the first quarter of 2026.

Previous wording

Average interest-bearing deposits were $1.98 billion for the three months ended June 30, 2026 and $1.80 billion for the three months ended June 30, 2025. The $185.0 million increase was primarily driven by average balance increases of $223.4 million in money market checking accounts, $139.9 million in negotiable order of withdrawal accounts and $32.1 million in savings accounts, partially offset by a decline of $209.6 million in CDs.

Current wording

Average interest-bearing deposits were $2.02 billion for the three months ended September 30, 2026 and $1.99 billion for the three months ended September 30, 2025. The $25.9 million increase was primarily driven by average balance increases of $140.8 million in money market checking accounts and $77.9 million in negotiable order of withdrawal accounts, partially offset by a decline of $190.8 million in CDs and $1.2 million in savings accounts.

Previous wording

Total interest expense declined $0.3 million, primarily driven by a lower balance in CDs and lower interest rates. The cost of interest-bearing liabilities declined to 3.20% for the three months ended June 30, 2026 from 3.55% for the three months ended June 30, 2025.

Current wording

Total interest expense declined $1.1 million, primarily driven by a lower balance in CDs and lower interest rates. The cost of interest-bearing liabilities declined to 3.16% for the three months ended September 30, 2026 from 3.38% for the three months ended September 30, 2025.

Previous wording

Net interest margin on a tax-equivalent basis was 3.94% for the six months ended June 30, 2026 compared to 3.67% for the six months ended June 30, 2025. The increase in net interest margin on a tax-equivalent basis primarily reflects a decline in funding costs and an increase in earning asset yields.

Current wording

Net interest margin on a tax-equivalent basis was 3.97% for the nine months ended September 30, 2026 compared to 3.63% for the nine months ended September 30, 2025. The increase in net interest margin on a tax-equivalent basis primarily reflects a decline in funding costs and an increase in earning asset yields.

Previous wording

During the six months ended June 30, 2026, net interest income increased by $8.3 million, or 15.8%, to $60.7 million from $52.5 million during the six months ended June 30, 2025. This increase is largely due to a decrease in cost of funds and an increase in yields on earning assets. Average total earning assets were $3.12 billion in the six months ended June 30, 2026 compared to $2.90 billion in the six months ended June 30, 2025. Total interest income increased by $7.7 million, or 9.0%, to $93.4 million in the six months ended June 30, 2026 from $85.6 million in the six months ended June 30, 2025, primarily reflecting higher average loan balances, partially offset by lower interest rates. Average total loans increased to $2.40 billion in the six months ended June 30, 2026 from $2.10 billion in the six months ended June 30, 2025, primarily as the result of a $290.5 million increase in average commercial loans and a $63.1 million increase in average consumer loans, partially offset by a $53.4 million decrease in average real estate loans.

Current wording

During the nine months ended September 30, 2026, net interest income increased by $14.3 million, or 18.1%, to $93.3 million from $79.0 million during the nine months ended September 30, 2025. This increase is largely due to a decrease in cost of funds and an increase in yields on earning assets. Average total earning assets were $3.15 billion in the nine months ended September 30, 2026 compared to $2.93 billion in the nine months ended September 30, 2025. Total interest income increased by $12.7 million, or 9.8%, to $142.5 million in the nine months ended September 30, 2026 from $129.8 million in the nine months ended September 30, 2025, primarily reflecting higher average loan balances, partially offset by lower interest rates. Average total loans increased to $2.42 billion in the nine months ended September 30, 2026 from $2.13 billion in the nine months ended September 30, 2025, primarily as the result of a $257.4 million increase in average commercial loans and a $35.6 million increase in average consumer loans, partially offset by a $0.4 million decrease in average real estate loans.

Previous wording

Average investment securities increased $7.5 million as the result of a $50.3 million increase in taxable investments, partially offset by a $42.9 million decrease in tax-exempt investments during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The yield on taxable securities increased 150 basis points, and the tax-exempt securities yield increased 52 basis points.

Current wording

Average investment securities increased $21.0 million as the result of a $60.4 million increase in taxable investments, partially offset by a $39.5 million decrease in tax-exempt investments during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The yield on taxable securities increased 142 basis points, and the tax-exempt securities yield increased 57 basis points.

Previous wording

Average interest-bearing liabilities increased $205.7 million, primarily driven by a $219.6 million increase in average interest-bearing deposits and a $13.8 million increase in the average balance of the revolving line of credit, which was entered into during the first quarter of 2026. These increases were partially offset by a $26.5 million decrease in the average balance of subordinated debt resulting from the $40.0 million redemption during the first quarter of 2026.

Current wording

Average interest-bearing liabilities increased $118.0 million, primarily driven by a $133.8 million increase in average interest-bearing deposits and a $15.9 million increase in the average balance of the revolving line of credit, which was entered into during the first quarter of 2026. These increases were partially offset by a $31.0 million decrease in the average balance of subordinated debt resulting from the $40.0 million redemption during the first quarter of 2026.

Previous wording

Average interest-bearing deposits were $2.00 billion for the six months ended June 30, 2026 and $1.78 billion for the six months ended June 30, 2025. The $219.6 million increase was primarily driven by average balance increases of $215.0 million in money market checking accounts, $195.9 million in negotiable order of withdrawal accounts and $45.9 million in saving accounts, partially offset by a decline of $236.6 million in CDs.

Current wording

Average interest-bearing deposits were $1.99 billion for the nine months ended September 30, 2026 and $1.85 billion for the nine months ended September 30, 2025. The $133.8 million increase was primarily driven by average balance increases of $190.0 million in money market checking accounts, $135.6 million in negotiable order of withdrawal accounts and $30.1 million in saving accounts, partially offset by a decline of $221.1 million in CDs.

Previous wording

Total interest expense declined by $0.5 million, primarily driven by a lower balance in CDs and lower interest rates. The cost of interest-bearing liabilities declined to 3.18% in the six months ended June 30, 2026 from 3.59% in the six months ended June 30, 2025.

Current wording

Total interest expense declined by $1.6 million, primarily driven by a lower balance in CDs and lower interest rates. The cost of interest-bearing liabilities declined to 3.21% in the nine months ended September 30, 2026 from 3.51% in the nine months ended September 30, 2025.

Previous wording

The provision for credit losses totaled $4.7 million for the three months ended June 30, 2026 compared to $2.0 million for the three months ended June 30, 2025. The increase in provision reflected continued loan growth with total loans increasing $72.7 million during the three months ended June 30, 2026. This loan growth, combined with specific reserves associated with a small number of isolated credits and updates to the qualitative factors based on current economic conditions, resulted in an additional provision of $2.6 million during the three months ended June 30, 2026. Individually analyzed provision was increased by $3.3 million, unallocated allowance was reduced by $1.3 million and light degradation in the adjusted allocation rates due to model updates resulted in an increase of provision of $1.0 million. The provision for unfunded commitments totaled $0.1 million and $0.2 million during the three months ended June 30, 2026 and 2025, respectively. Net charge-offs totaled $1.4 million and $0.2 million during the three months ended June 30, 2026 and 2025, respectively.

Current wording

The provision for credit losses totaled $9.9 million for the three months ended September 30, 2026 compared to $4.4 million for the three months ended September 30, 2025. The increase in provision reflected continued loan growth with total loans increasing $43.8 million during the three months ended September 30, 2026. This loan growth, combined with specific reserves associated with a small number of isolated credits and updates to the qualitative factors based on current economic conditions, resulted in an additional provision of $7.3 million during the three months ended September 30, 2026. Individually analyzed provision was increased by $6.7 million, degradation in the adjusted allocation rates due to model updates and qualitative factor adjustments resulted in an increase of provision of $1.5 million with other adjustments decreasing the provision by $0.9 million. The provision for unfunded commitments totaled $0.2 million during the three months ended September 30, 2026 and 2025, respectively. Net charge-offs totaled $2.5 million and $0.7 million during the three months ended September 30, 2026 and 2025, respectively.

Previous wording

The provision for credit losses totaled $6.5 million for the the six months ended June 30, 2026, compared to $2.2 million for the the six months ended June 30, 2025. Loan balances increased $133.2 million during the six months ended June 30, 2026, resulting in a $3.5 million provision. The individually analyzed provision also increased by $3.2 million, the unallocated allowance was reduced by $1.1 million and slight degradation in the adjusted allocation rates due to model updates resulted in an increase of provision of $0.7 million. The release of allowance for unfunded commitments totaled $0.3 million and was immaterial during the six months ended June 30, 2026 and 2025, respectively. Net charge-offs totaled $2.9 million and $1.0 million during the six months ended June 30, 2026 and 2025, respectively.

Current wording

The provision for credit losses totaled $16.5 million for the nine months ended September 30, 2026, compared to $6.6 million for the the nine months ended September 30, 2025. Loan balances increased $177.0 million during the nine months ended September 30, 2026, resulting in a $3.5 million provision. The individually analyzed provision also increased by $9.9 million, the unallocated allowance was reduced by $1.1 million and slight degradation in the adjusted allocation rates due to model updates resulted in an increase of provision of $2.2 million. The release of allowance and provision for unfunded commitments totaled $0.2 million and $0.2 million during the nine months ended September 30, 2026 and 2025, respectively. Net charge-offs totaled $5.4 million and $1.7 million during the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Noninterest expense totaled $30.4 million for the three months ended June 30, 2026, an increase of $1.8 million from $28.6 million for the three months ended June 30, 2025. The increase was primarily driven by increases of $1.8 million in salaries and employee benefits, $0.5 million in software costs and $0.5 million in other operating expenses, partially offset by decreases of $0.8 million in professional fees and $0.3 million in equipment depreciation and maintenance expense. Approximately 58.0% and 55.3% of noninterest expense for the three months ended June 30, 2026 and 2025, 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 totaled $29.8 million for the three months ended September 30, 2026, a decline of $3.5 million from $33.3 million for the three months ended September 30, 2025. The decline was primarily driven by decreases of $4.3 million in salaries and employee benefits and $1.1 million in professional fees, partially offset by increases of $0.8 million in other operating expenses and $0.8 million in software costs. Approximately 57.4% and 64.2% of noninterest expense for the three months ended September 30, 2026 and 2025, 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

Noninterest expense totaled $58.5 million for the six months ended June 30, 2026, an increase of $1.3 million from $57.3 million for the six months ended June 30 2025. The increase was primarily driven by increases of $1.6 million in salaries and employee benefits, $1.2 million in software costs and $0.8 million in other operating expenses, partially offset by decreases of $1.9 million in professional fees and $0.7 million in equipment depreciation and maintenance expense. Approximately 57.7% and 56.2% of noninterest expense for the six months ended June 30, 2026 and 2025, 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 totaled $88.4 million for the nine months ended September 30, 2026, a decline of $2.2 million from $90.6 million for the nine months ended September 30 2025. The decline was primarily driven by decreases of $2.7 million in salaries and employee benefits, $3.0 million in professional fees and $1.0 million in equipment depreciation and maintenance expenses, partially offset by increases of $1.6 million in other operating expenses, $1.5 million in software costs and $0.7 million in travel, entertainment, dues, and subscriptions expenses. Approximately 57.6% and 59.2% of noninterest expense for the nine months ended September 30, 2026 and 2025, 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

Return on average assets was 1.4% for the three months ended June 30, 2026, compared to 0.3% for the three months ended June 30, 2025. The higher return was the result of a $10.2 million increase in net income, which primarily reflects the previously discussed net gain on an existing Fintech investment. The increase in earnings was partially offset by a $342.2 million increase in average total assets, which was primarily driven by increases of $313.2 million in average commercial loans, $89.6 million in average consumer loans and $66.3 million in average taxable investment securities. These increases were partially offset by decreases of $79.3 million in average interest-bearing deposits with banks, $48.6 million in average real estate loans and $40.5 million in average tax-exempt investment securities.

Current wording

Return on average assets was 0.0% for the three months ended September 30, 2026, compared to 2.1% for the three months ended September 30, 2025. The lower return was the result of a $16.7 million decline in net income. The decline in earnings was partially offset by a $269.5 million increase in average total assets, which was primarily driven by increases of $192.3 million in average commercial loans, $80.3 million in average taxable investment securities, $47.9 million in average real estate loans and $37.8 million in average consumer loans. These increases were partially offset by decreases of $84.3 million in average interest- bearing deposits with banks and $32.8 million in average tax-exempt investment securities.

Previous wording

Return on average assets was 1.0% for the six months ended June 30, 2026, compared to 0.3% for the six months ended June 30, 2025. The higher return was the result of an $11.9 million increase in net income, which primarily reflects the previously discussed net gain on an existing Fintech investment. The increase in earnings was partially offset by a $240.7 million increase in average total assets, which was primarily driven by increases of $290.5 million in average commercial loans, $63.1 million in average consumer loans and $50.3 million in average taxable investment securities. These increases were partially offset by decreases of $91.9 million in average interest-bearing deposits with banks, $53.4 million in average real estate loans and $42.9 million in average tax-exempt investment securities.

Current wording

Return on average assets was 0.7% for the nine months ended September 30, 2026, compared to 0.9% for the nine months ended September 30, 2025. The lower return was the result of a $4.8 million decline in net income. The decline in earnings was partially offset by a $250.4 million increase in average total assets, which was primarily driven by increases of $257.4 million in average commercial loans, $60.4 million in average taxable investment securities and $35.6 million in average consumer loans. These increases were partially offset by decreases of $89.3 million in average interest-bearing deposits with banks and $39.5 million in average tax-exempt investment securities.

Previous wording

Return on average stockholders’ equity was 14.3% for the three months ended June 30, 2026, compared to 2.6% for the three months ended June 30, 2025. The higher return was primarily driven by the $10.2 million increase in earnings, partially offset by a $37.8 million increase in average equity.

Current wording

Return on average stockholders’ equity was 0.5% for the three months ended September 30, 2026, compared to 22.9% for the three months ended September 30, 2025. The lower return was primarily driven by the $16.7 million decline in earnings, partially offset by a $43.2 million increase in average equity.

Previous wording

Return on average stockholders’ equity was 10.2% for the six months ended June 30, 2026, compared to 3.7% for the six months ended June 30, 2025. The higher return was primarily driven by the $11.9 million increase in earnings, partially offset by a $36.1 million increase in average equity.

Current wording

Return on average stockholders’ equity was 7.0% for the nine months ended September 30, 2026, compared to 10.0% for the nine months ended September 30, 2025. The lower return was primarily driven by the $4.8 million decline in earnings, partially offset by a $38.5 million increase in average equity.

Previous wording

Cash and cash equivalents totaled $312.6 million at June 30, 2026, compared to $244.1 million at December 31, 2025. 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 $210.0 million at September 30, 2026, compared to $244.1 million at December 31, 2025. 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 $492.1 million at June 30, 2026, compared to $461.2 million at December 31, 2025. 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 $506.3 million at September 30, 2026, compared to $461.2 million at December 31, 2025. 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 $2.48 billion as of June 30, 2026 and $2.34 billion as of December 31, 2025. The Bank’s lending is primarily focused in North Central West Virginia, Northern Virginia, North Carolina, South Carolina, Maryland and New York. The portfolio consists principally of commercial lending, retail lending, which includes single-family residential mortgages, and consumer lending.

Current wording

Our loan portfolio totaled $2.52 billion as of September 30, 2026 and $2.34 billion as of December 31, 2025. The Bank’s lending is primarily focused in North Central West Virginia, Northern Virginia, North Carolina, South Carolina, Maryland and New York. The portfolio consists principally of commercial lending, retail lending, which includes single-family residential mortgages, and consumer lending.

Previous wording

At June 30, 2026 and December 31, 2025, 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 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 25.0% and 27.8% of our total loan portfolio as of June 30, 2026 and December 31, 2025, respectively.

Current wording

At September 30, 2026 and December 31, 2025, 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 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 23.9% and 27.8% of our total loan portfolio as of September 30, 2026 and December 31, 2025, respectively.

Previous wording

The ACL was $28.2 million, or 1.14% of loans receivable, at June 30, 2026, compared to $21.8 million, or 0.93% of loans receivable, at December 31, 2025. Over the six months ended June 30, 2026, changes to the loan portfolio balances, qualitative factor adjustments and expected loss forecasts within the expected credit loss calculations resulted in an increase of $3.2 million to specific reserves for individually analyzed loans, increases totaling $2.2 million in the ACL attributable to the purchased seasoned residential loans, as well as consumer, home equity lines of credit and other segments, an increase of $1.6 million in the residential segment and a $1.0 million increase across the commercial real estate, owner occupied commercial real estate and commercial and industrial segments. The increases were partially offset by decreases of $1.1 million to the unallocated segment, decreases of $0.4 million to the commercial acquisition, development and construction segment and a decrease of $0.1 million in the residential construction segment. Bank management expects the markets in which it operates will experience potential economic volatility over the next one to two years. For the six months ended June 30, 2026, bank management has observed increases to loan balances and increases to allocation rates within the pooled loan portfolio.

Current wording

The ACL was $36.2 million, or 1.44% of loans receivable, at September 30, 2026, compared to $21.8 million, or 0.93% of loans receivable, at December 31, 2025. Over the nine months ended September 30, 2026, changes to the loan portfolio balances, qualitative factor adjustments and expected loss forecasts within the expected credit loss calculations resulted in an increase of $9.9 million to specific reserves for individually analyzed loans, increases totaling $2.9 million in pooled loan reserves, concentrated in the commercial, commercial real estate, and commercial construction segments and increases totaling $3.2 million in the ACL attributable to the purchased seasoned residential and consumer loans. The increases were partially offset by decreases of $1.1 million to the unallocated segment, decreases of $0.4 million in the residential construction segment and decreases of $0.1 million to the commercial owner occupied segment. Bank management expects the markets in which it operates will experience potential economic volatility over the next one to two years. For the nine months ended September 30, 2026, bank management has observed increases to loan balances and increases to allocation rates within the pooled loan portfolio.

Previous wording

Deposits remain the most significant source of funds, totaling $3.11 billion, or 98.2% of funding sources at June 30, 2026, compared to $2.84 billion, or 97.3% of funding sources, at December 31, 2025.

Current wording

Deposits remain the most significant source of funds, totaling $3.09 billion, or 98.2% of funding sources at September 30, 2026, compared to $2.84 billion, or 97.3% of funding sources, at December 31, 2025.

Previous wording

As a component of total deposits, Fintech deposits totaled $1.25 billion and $1.21 billion at June 30, 2026 and December 31, 2025, respectively. The increase in Fintech deposits is primarily attributable to an increase in gaming deposits, which were $278.8 million at June 30, 2026, compared to $184.3 million at December 31, 2025 and an increase in banking-as-a-service deposits, which were $342.4 million at June 30, 2026, compared to $329.5 million at December 31, 2025. These increases were partially offset by declines in payments deposits and digital asset deposits, which were $598.0 million and $28.8 million, respectively, at June 30, 2026, compared to $660.3 million and $31.3 million at December 31, 2025.

Current wording

As a component of total deposits, Fintech deposits totaled $1.40 billion and $1.21 billion at September 30, 2026 and December 31, 2025, respectively. The increase in Fintech deposits is primarily attributable to an increase in gaming deposits, which were $321.3 million at September 30, 2026, compared to $184.3 million at December 31, 2025 and an increase in payments deposits, which were $766.0 million at September 30, 2026, compared to $660.3 million at December 31, 2025. These increases were partially offset by declines in banking-as-a-service deposits and digital asset deposits, which were $304.0 million and $12.4 million, respectively, at September 30, 2026, compared to $329.5 million and $31.3 million at December 31, 2025.

Previous wording

CDs decreased to $429.7 million at June 30, 2026, compared to $581.9 million at December 31, 2025, primarily driven by a decrease of $82.5 million of Retail CDs and $69.7 million in Brokered CDs.

Current wording

CDs decreased to $392.5 million at September 30, 2026, compared to $581.9 million at December 31, 2025, primarily driven by a decrease of $107.0 million of Retail CDs and $82.4 million in Brokered CDs.

Previous wording

At June 30, 2026, noninterest-bearing balances totaled $1.07 billion, consistent with the balance at December 31, 2025, or 34.4% and 40.3%, respectively, of total deposits. Interest-bearing deposits totaled $2.04 billion at June 30, 2026, compared to $1.70 billion at December 31, 2025.

Current wording

At September 30, 2026, noninterest-bearing balances totaled $1.00 billion, compared to $1.14 billion at December 31, 2025, or 32.3% and 40.3%, respectively, of total deposits. Interest-bearing deposits totaled $2.09 billion at September 30, 2026, compared to $1.70 billion at December 31, 2025.

Previous wording

For the three months ended June 30, 2026, average interest-bearing deposits were $1.98 billion and average noninterest-bearing deposits were $1.03 billion, compared to $1.80 billion and $886.7 million, respectively, for the three months ended June 30, 2025.

Current wording

For the three months ended September 30, 2026, average interest-bearing deposits were $2.02 billion and average noninterest-bearing deposits were $1.09 billion, compared to $1.99 billion and $862.1 million, respectively, for the three months ended September 30, 2025.

Previous wording

For the six months ended June 30, 2026, average interest-bearing deposits were $2.00 billion and average noninterest-bearing deposits were $0.99 billion, compared to $1.78 billion and $989.1 million, respectively, for the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, average interest-bearing deposits were $1.99 billion and average noninterest-bearing deposits were $1.04 billion, compared to $1.85 billion and $946.3 million, respectively, for the nine months ended September 30, 2025.

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 $627.9 million at June 30, 2026 and $732.9 million at December 31, 2025, primarily representing the banking-as-a-service and gaming 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 $708.9 million at September 30, 2026 and $732.9 million at December 31, 2025, primarily representing the banking-as-a-service and gaming industries.

Previous wording

Three of our primary deposit verticals are payments, banking-as-a-service and gaming, with such deposits totaling $598.0 million, $342.4 million and $278.8 million as of June 30, 2026, respectively, compared to $660.3 million, $329.5 million and $184.3 million as of December 31, 2025, respectively. Of the gaming deposits, which primarily include clients engaged in online sports betting, $249.8 million is with our three largest gaming clients at June 30, 2026.

Current wording

Three of our primary deposit verticals are payments, banking-as-a-service and gaming, with such deposits totaling $766.0 million, $304.0 million and $321.3 million as of September 30, 2026, respectively, compared to $660.3 million, $329.5 million and $184.3 million as of December 31, 2025, respectively. Of the gaming deposits, which primarily include clients engaged in online sports betting, $286.6 million is with our three largest gaming clients at September 30, 2026.