MVB Financial Corp. Announces Fourth Quarter and Full Year 2024 Results

FAIRMONT, W.Va.--(BUSINESS WIRE)--MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB” or the “Company”), the holding company for MVB Bank, Inc. ("MVB Bank"), today announced financial results for the fourth quarter and year ended December 31, 2024, with reported net income of $9.4 million, or $0.73 basic and $0.72 diluted earnings per share for the three months ended December 31, 2024. Fourth Quarter 2024 Highlights Net income was $9.4 million, an increase of $7.4 million from prior quarter. Noninterest bearing deposits represent 34.9% of total deposits. Tangible book value per share of $23.37, up 0.7% from the prior quarter. Capital strength further enhanced. MVB names Jeffrey Weidley as Chief Deposit Officer and Joe Rodriguez as Chief Risk Officer. From Larry F. Mazza, Chief Executive Officer, MVB Financial: “While the fourth quarter presented financial challenges, MVB continued to adapt and narrow our strategic focus, positioning the company for long-term success. The fourth quarter marked the end of a pivotal transition year, during which we simplified our growth strategy and strengthened our team to make meaningful investments in the future. Recent key leadership appointments have been made to help support this shift. In mid-November, risk management industry veteran Joe Rodriguez, formerly of Capital One, joined as Chief Risk Officer, bringing a wealth of experience in transforming risk management into a key business driver. After year-end, we appointed Jeffrey Weidley as Chief Deposit Officer. A seasoned banker in the DC metro area, Jeffrey will oversee strategies to grow MVB’s deposit base. “Looking ahead, I’m encouraged by the continued evolution of our business model and our strong foundation, which includes a best-in-class core funding profile, a strong liquidity position, capital management strength and stable asset quality. Our laser focus on payments continues to drive meaningful progress, as we deliver innovative solutions to support our existing clients and grow revenue. With loan pipelines building and a renewed sense of optimism across the broader economy, MVB is well-positioned to adapt to future opportunities and create long-term value for our clients and stakeholders.” FOURTH QUARTER 2024 HIGHLIGHTS Noninterest income higher on gain on sale of assets and higher revenue from Victor subsidiary; expenses higher due primarily to higher personnel costs. Total noninterest income increased $14.6 million, or 219.7%, relative to the prior quarter, to $21.3 million. The increase is primarily attributable to the $11.8 million gain on sale of assets associated with the previously disclosed sale-leaseback transaction, an increase of $1.2 million in other operating income, driven by net deposit network fee income and revenue from our subsidiary Victor Technologies, Inc. (“Victor”), and a $1.0 million increase in gain on sale of loans. Noninterest expense increased $4.1 million, or 14.0%, relative to the prior quarter, to $33.6 million. The increase is primarily due to employee benefits costs and incentive compensation, as well as higher professional fees driven by incremental internal audit and legal fees. Additionally, other operating expenses increased reflecting higher correspondent banking fees driven by transaction volume. Measures of foundational strength were further enhanced. The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 11.2%, 15.1%, and 15.8%, respectively, compared to 10.9%, 14.9%, and 15.7%, respectively, at the prior quarter-end. The tangible common equity ratio, a non-U.S. GAAP financial measure, was 9.7% as of December 31, 2024, up from 8.8% as of September 30, 2024. Book value per share and tangible book value per share, a non-U.S. GAAP measure, were $23.61 and $23.37, respectively, which both represent increases of 0.7% relative to the prior quarter-end. Nonperforming loans declined $3.9 million, or 13.8%, to $24.6 million, or 1.2% of total loans, from $28.6 million, or 1.3% of total loans, at the prior quarter-end. Criticized loans totaled $130.5 million, or 6.2% of total loans, as compared to $124.2 million, or 5.7% of total loans, at the prior quarter-end. Provision for credit losses totaled $0.3 million, down from $1.0 million for the prior quarter as a result of lower loan balances. Allowance for credit losses was 0.9% of total loans at December 31, 2024, as compared to 1.0% at the prior quarter-end. INCOME STATEMENT Net interest income on a tax-equivalent basis totaled $25.1 million for the fourth quarter of 2024, a decline of $1.7 million, or 6.3%, from the third quarter of 2024 and $6.2 million, or 19.8%, from the fourth quarter of 2023. The decline in the fourth quarter of 2024 compared to the prior periods was driven by a decline in the net interest margin and lower average earning asset balances. Interest income declined $3.6 million, or 7.7%, from the third quarter of 2024 and $6.6 million, or 13.4%, from the fourth quarter of 2023. The decline from the third quarter of 2024 reflects lower loan balances and the impact of lower interest rates on interest income from loans and cash balances. The decline from the fourth quarter of 2023 reflects a decline in cash balances, largely driven by the exit of digital asset program accounts, a decline in loan balances and the impact of lower interest rates on interest income from loans and cash balances. Interest expense declined $1.9 million, or 9.4%, compared to the third quarter of 2024 and $0.4 million, or 2.4%, compared to the fourth quarter of 2023. The cost of funds was 2.56% for the fourth quarter of 2024, down 21 basis points compared to the third quarter of 2024 and up 12 basis points compared to the fourth quarter of 2023. The decline in the cost of funds compared to the prior quarter reflects lower brokered deposits. Additionally, the current quarter cost of funds reflected $0.2 million of termination costs related to the Company’s decision to call a brokered certificate of deposit (“CD”) during the fourth quarter of 2024, while the prior quarter reflected termination costs of $0.3 million associated with two brokered CDs that were called during the third quarter of 2024. Relative to the year-ago period, the increase in the cost of funds reflects the impact of higher interest rates on our deposits, a shift in the mix of average deposits and the exit of the digital asset program account relationships. On a fully tax-equivalent basis, net interest margin for the fourth quarter of 2024 was 3.46%, a decline of 15 basis points from the third quarter of 2024 and 60 basis points from the fourth quarter of 2023. See the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. Contraction in the net interest margin from the third quarter of 2024 primarily reflected lower loan balances, partially offset by lower funding costs. Contraction in the net interest margin from the fourth quarter of 2023 primarily reflected higher funding costs and an unfavorable shift in the mix of deposit funding, partially offset by higher earning asset yields. Noninterest income totaled $21.3 million for the fourth quarter of 2024, an increase of $14.6 million, or 219.7%, from the third quarter of 2024 and $16.8 million, or 379.5%, from the fourth quarter of 2023. The increase compared to the third quarter of 2024 was primarily driven by the $11.8 million gain on sale of assets associated with the sale-leaseback transaction and increases of $1.2 million in other operating income, driven by revenue from our subsidiary Victor, and $1.0 million in gain on sale of loans. The increase in noninterest income from the fourth quarter of 2023 was primarily driven by the $11.8 million gain on sale of assets associated with the sale-leaseback transaction and $1.3 million in equity method investment income from our mortgage companies, compared to a $2.4 million loss in equity method investment income from our mortgage segment in the prior year period. Noninterest expense totaled $33.6 million for the fourth quarter of 2024, an increase of $4.1 million, or 14.0%, from the third quarter of 2024 and $5.3 million, or 18.8%, from the fourth quarter of 2023. The increase from the third quarter of 2024 was driven by increases of $2.1 million in employee benefits and incentive compensation, $1.1 million in professional fees, driven by incremental internal audit and legal fees, and $0.9 million in other operating expense, driven by higher correspondent banking fees as transaction volume increased. The increase from the fourth quarter of 2023 primarily reflected increases of $3.9 million in employee benefits and incentive compensation, $0.8 million in other operating expense and $0.5 million in travel, entertainment, dues and subscriptions. BALANCE SHEET Loans totaled $2.10 billion at December 31, 2024, a decline of $71.1 million, or 3.3%, as compared to September 30, 2024 and $217.5 million, or 9.4%, as compared to December 31, 2023. The decline in loan balances relative to the prior quarters primarily reflects loan sales, slower loan growth based on overall market conditions and the impact of loan amortization and payoffs. Deposits totaled $2.69 billion as of December 31, 2024, a decline of $308.0 million, or 10.3%, from September 30, 2024 and $207.9 million, or 7.2%, from December 31, 2023. NIB deposits totaled $941.0 million as of December 31, 2024, a decline of $48.2 million, or 4.9%, from September 30, 2024 and $256.3 million, or 21.4%, from December 31, 2023. The decline in deposit balances relative to the prior quarters primarily reflects the utilization of off-balance sheet deposit networks to generate fee income, enhance capital efficiency and manage liquidity and concentration risk. Relative to the prior year period, the decline in deposit balances also reflects the exit of digital asset program accounts. In January 2025, the Bank sold its interest in Trabian Technology, Inc (“Trabian”). As a result, the related assets and liabilities of Trabian are shown as held-for-sale on the condensed consolidated balance sheet. CAPITAL The Community Bank Leverage Ratio was 11.2% as of December 31, 2024, compared to 10.9% as of September 30, 2024 and 10.5% as of December 31, 2023. MVB’s Tier 1 Risk-Based Capital Ratio was 15.1% as of December 31, 2024, compared to 14.9% as of September 30, 2024 and 14.4% as of December 31, 2023. The Bank’s Total Risk-Based Capital Ratio was 15.8% as of December 31, 2024, compared to 15.7% as of September 30, 2024 and 15.1% as of December 31, 2023. The Company issued a quarterly cash dividend of $0.17 per share for the quarter ended December 31, 2024, consistent with the quarters ended September 30, 2024 and December 31, 2023. ASSET QUALITY Nonperforming loans totaled $24.6 million, or 1.2% of total loans, as of the fourth quarter of 2024, as compared to $28.6 million, or 1.3% of total loans as of the third quarter of 2024 and $8.3 million, or 0.4% of total loans as of the fourth quarter of 2023. The increase in nonperforming loans reflects the addition of a multifamily commercial construction loan with an outstanding balance of $13.5 million during the year. Criticized loans were $130.5 million, or 6.2% of total loans, as compared to $124.2 million, or 5.7% of total loans, as of the third quarter of 2024 and $122.4 million, or 5.3% of total loans, as of the fourth quarter of 2023. Net charge-offs were $1.5 million, or 0.3% of total loans, for the fourth quarter of 2024, compared to $0.7 million, or 0.1% of total loans, for the third quarter of 2024 and $0.5 million, or 0.1% of total loans for the fourth quarter of 2023. The provision for credit losses totaled $0.3 million for the quarter ended December 31, 2024, compared to $1.0 million for the quarter ended September 30, 2024 and a release of allowance of $2.1 million for the quarter ended December 31, 2023. The lower provision for credit losses for the quarter ended December 31, 2024 compared to September 30, 2024 reflected lower loan balances. The allowance for credit losses was 0.9% of total loans at December 31, 2024, as compared to 1.0% as of September 30, 2024 and 1.0% as of December 31, 2023. About MVB Financial Corp. MVB Financial, the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® (“Nasdaq”) under the ticker “MVBF.” MVB is a financial holding company headquartered in Fairmont, West Virginia. Through its subsidiary, MVB Bank, and MVB Bank’s subsidiaries, MVB Financial provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond. Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. For more information about MVB, please visit ir.mvbbanking.com. Forward-looking Statements MVB Financial has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this press release that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and are subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,” “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues” or the negative of those terms or similar expressions. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity and credit risk; changes in market interest rates; impacts related to or resulting from recent turmoil in the banking industry; inability to successfully execute business plans, including strategies related to investments in Fintech companies; competition; unforeseen events, such as pandemics or natural disasters, and any governmental or societal responses thereto; changes in economic, business and political conditions; changes in demand for loan products and deposit flow; changes in deposit classifications; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise or correct any forward-looking statements. Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the SEC. Accordingly, the consolidated financial information in this announcement is subject to change. Non-U.S. GAAP Financial Measures This document contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management uses these non-U.S. GAAP measures in its analysis of the Company’s performance. These measures should not be considered a substitute for U.S. GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with U.S. GAAP. Management believes the presentation of non-U.S. GAAP financial measures that exclude the impact of specified items provide useful supplemental information that is essential to a proper understanding of the Company’s financial condition and results. Non-U.S. GAAP measures are not formally defined under U.S. GAAP, and other entities may use calculation methods that differ from those used by us. As a complement to U.S. GAAP financial measures, our management believes these non-U.S. GAAP financial measures assist investors in comparing the financial condition and results of operations of financial institutions due to the industry prevalence of such non-U.S. GAAP measures. See the tables below for a reconciliation of these non-U.S. GAAP measures to the most directly comparable U.S. GAAP financial measures. MVB Financial Corp. Financial Highlights Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) Quarterly Year-to-Date 2024 2024 2023 2024 2023 Fourth Quarter Third Quarter Fourth Quarter Interest income $ 43,058 $ 46,627 $ 49,699 $ 185,842 $ 189,818 Interest expense 18,154 20,042 18,592 76,644 66,535 Net interest income 24,904 26,585 31,107 109,198 123,283 Provision (release of allowance) for credit losses 331 959 (2,103 ) 3,541 (1,921 ) Net interest income after provision (release of allowance) for credit losses 24,573 25,626 33,210 105,657 125,204 Total noninterest income 21,280 6,657 4,438 42,913 19,715 Noninterest expense: Salaries and employee benefits 18,795 16,722 14,863 67,955 63,371 Other expense 14,825 12,763 13,438 54,271 54,254 Total noninterest expenses 33,620 29,485 28,301 122,226 117,625 Income before income taxes 12,233 2,798 9,347 26,344 27,294 Income taxes 2,795 642 1,431 6,099 5,070 Net income from continuing operations before noncontrolling interest 9,438 2,156 7,916 20,245 22,224 Income from discontinued operations before income taxes — — — — 11,831 Income taxes - discontinued operations — — — — 3,049 Net income from discontinued operations — — — — 8,782 Net income, before noncontrolling interest 9,438 2,156 7,916 20,245 31,006 Net (income) loss attributable to noncontrolling interest 2 (76 ) (5 ) (154 ) 226 Net income available to common shareholders $ 9,440 $ 2,080 $ 7,911 $ 20,091 $ 31,232 Earnings per share from continuing operations - basic $ 0.73 $ 0.16 $ 0.62 $ 1.56 $ 1.77 Earnings per share from discontinued operations - basic $ — $ — $ — $ — $ 0.69 Earnings per share - basic $ 0.73 $ 0.16 $ 0.62 $ 1.56 $ 2.46 Earnings per share from continuing operations - diluted $ 0.72 $ 0.16 $ 0.61 $ 1.53 $ 1.72 Earnings per share from discontinued operations - diluted $ — $ — $ — $ — $ 0.68 Earnings per share - diluted $ 0.72 $ 0.16 $ 0.61 $ 1.53 $ 2.40 Noninterest Income (Unaudited) (Dollars in thousands) Quarterly Year-to-Date 2024 2024 2023 2024 2023 Fourth Quarter Third Quarter Fourth Quarter Card acquiring income $ 489 $ 336 $ 1,348 $ 1,413 $ 3,603 Service charges on deposits 859 1,088 174 4,573 2,850 Interchange income 2,470 2,428 2,289 10,314 7,323 Total payment card and service charge income 3,818 3,852 3,811 16,300 13,776 Equity method investments income (loss) 1,319 746 (2,429 ) 1,421 (2,499 ) Compliance and consulting income 1,110 1,291 986 4,675 4,312 Gain (loss) on sale of loans 1,012 26 271 1,038 (744 ) Investment portfolio gains (losses) 721 498 75 1,945 (1,659 ) Loss on acquisition and divestiture activity — — — — (986 ) Gain (loss) on sale of assets 11,771 (2 ) — 11,703 — Other noninterest income 1,529 246 1,724 5,831 7,515 Total noninterest income $ 21,280 $ 6,657 $ 4,438 $ 42,913 $ 19,715 Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) December 31, 2024 September 30, 2024 December 31, 2023 Cash and cash equivalents $ 317,913 $ 610,911 $ 398,229 Securities available-for-sale, at fair value 411,640 374,828 345,275 Equity securities 42,583 41,760 41,086 Loans held-for-sale — — 629 Loans receivable 2,100,131 2,171,272 2,317,594 Less: Allowance for credit losses (19,663 ) (21,499 ) (22,124 ) Loans receivable, net 2,080,468 2,149,773 2,295,470 Premises and equipment, net 12,475 18,838 20,928 Assets held-for-sale 2,278 — — Other assets 261,347 222,646 212,265 Total assets $ 3,128,704 $ 3,418,756 $ 3,313,882 Noninterest-bearing deposits $ 940,994 $ 989,144 $ 1,197,272 Interest-bearing deposits 1,752,621 2,012,504 1,704,204 Senior term loan — — 6,786 Subordinated debt 73,787 73,725 73,540 Liabilities held-for-sale 720 — — Other liabilities 54,791 40,183 42,738 Stockholders' equity 305,791 303,200 289,342 Total liabilities and stockholders' equity $ 3,128,704 $ 3,418,756 $ 3,313,882 Average Balances and Interest Rates (Unaudited) (Dollars in thousands) Three Months Ended Three Months Ended Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Balance Interest Income/ Expense Yield/ Cost Average Balance Interest Income/ Expense Yield/ Cost Average Balance Interest Income/ Expense Yield/ Cost Assets Interest-bearing balances with banks $ 358,699 $ 4,191 4.65 % $ 400,330 $ 5,218 5.19 % $ 442,521 $ 5,944 5.33 % Investment securities: Taxable 290,468 2,199 3.01 258,151 1,846 2.84 222,303 1,444 2.58 Tax-exempt 1 105,190 851 3.22 104,769 867 3.29 98,464 876 3.53 Loans and loans held-for-sale: 2 Commercial 3 1,504,730 28,727 7.59 1,553,666 31,136 7.97 1,635,510 33,665 8.17 Tax-exempt 1 2,939 32 4.33 3,129 34 4.32 3,492 38 4.32 Real estate 560,790 6,025 4.27 558,691 6,446 4.59 576,580 6,421 4.42 Consumer 64,700 1,219 7.50 68,337 1,269 7.39 76,088 1,503 7.84 Total loans 2,133,159 36,003 6.71 2,183,823 38,885 7.08 2,291,670 41,627 7.21 Total earning assets 2,887,516 43,244 5.96 2,947,073 46,816 6.32 3,054,958 49,891 6.48 Less: Allowance for credit losses (21,542 ) (22,043 ) (24,079 ) Cash and due from banks 6,407 4,638 5,771 Other assets 284,294 284,640 292,574 Total assets $ 3,156,675 $ 3,214,308 $ 3,329,224 Liabilities Deposits: NOW $ 529,505 $ 4,092 3.07 % $ 534,494 $ 4,422 3.29 % $ 637,144 $ 5,386 3.35 % Money market checking 344,546 2,296 2.65 434,174 3,378 3.10 650,925 3,691 2.25 Savings 68,875 288 1.66 116,861 883 3.01 70,146 442 2.50 IRAs 8,085 92 4.53 8,164 91 4.43 7,296 66 3.59 CDs 834,668 10,561 5.03 800,986 10,440 5.19 590,517 8,014 5.38 Repurchase agreements and federal funds sold 3,904 21 2.14 3,589 19 2.11 4,736 — — FHLB and other borrowings 11 — — 44 — — 11 — — Senior term loan3 — — — — — — 8,183 183 8.87 Subordinated debt 73,765 804 4.34 73,702 809 4.37 73,510 810 4.37 Total interest-bearing liabilities 1,863,359 18,154 3.88 1,972,014 20,042 4.04 2,042,468 18,592 3.61 Noninterest-bearing demand deposits 961,142 910,787 975,122 Other liabilities 35,055 37,591 39,410 Total liabilities 2,859,556 2,920,392 3,057,000 Stockholders’ equity Common stock 13,785 13,776 13,588 Paid-in capital 163,986 163,189 160,106 Treasury stock (16,741 ) (16,741 ) (16,741 ) Retained earnings 161,382 160,694 156,004 Accumulated other comprehensive loss (25,416 ) (27,069 ) (40,688 ) Total stockholders’ equity attributable to parent 296,996 293,849 272,269 Noncontrolling interest 123 67 (45 ) Total stockholders’ equity 297,119 293,916 272,224 Total liabilities and stockholders’ equity $ 3,156,675 $ 3,214,308 $ 3,329,224 Net interest spread (tax-equivalent) 2.08 % 2.28 % 2.87 % Net interest income and margin (tax-equivalent) 1 $ 25,090 3.46 % $ 26,774 3.61 % $ 31,299 4.06 % Less: Tax-equivalent adjustments $ (186 ) $ (189 ) $ (193 ) Net interest spread 2.05 % 2.25 % 2.84 % Net interest income and margin $ 24,904 3.43 % $ 26,585 3.59 % $ 31,107 4.04 % 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 periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 13. 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. 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. Twelve Months Ended Twelve Months Ended December 31, 2024 December 31, 2023 Average Balance Interest Income/ Expense Yield/ Cost Average Balance Interest Income/ Expense Yield/ Cost Assets Interest-bearing balances with banks $ 422,165 $ 21,814 5.17 % $ 414,466 $ 21,043 5.08 % Investment securities: Taxable 261,986 7,693 2.94 221,395 5,576 2.52 Tax-exempt 1 104,765 3,287 3.14 116,680 4,347 3.73 Loans and loans held-for-sale: 2 Commercial 1,570,284 122,839 7.82 1,621,299 124,078 7.65 Tax-exempt 1 3,175 139 4.38 3,732 163 4.37 Real estate 564,633 25,474 4.51 591,157 24,764 4.19 Consumer 70,943 5,314 7.49 108,988 10,793 9.90 Total loans 2,209,035 153,766 6.96 2,325,176 159,798 6.87 Total earning assets 2,997,951 186,560 6.22 3,077,717 190,764 6.20 Less: Allowance for loan losses (22,108 ) (29,746 ) Cash and due from banks 5,246 6,659 Other assets 302,304 302,036 Total assets $ 3,283,393 $ 3,356,666 Liabilities Deposits: NOW $ 521,337 $ 17,587 3.37 % $ 697,266 $ 19,851 2.85 % Money market checking 396,881 12,770 3.22 504,730 10,352 2.05 Savings 115,270 3,756 3.26 76,908 1,871 2.43 IRAs 7,990 338 4.23 6,662 194 2.91 CDs 760,714 38,654 5.08 576,726 29,392 5.10 Repurchase agreements and federal funds sold 3,477 44 1.27 5,662 1 0.02 FHLB and other borrowings 25 2 6.46 17,542 889 5.07 Senior term loan3 2,355 264 11.21 9,007 766 8.50 Subordinated debt 73,667 3,229 4.38 73,415 3,219 4.38 Total interest-bearing liabilities 1,881,716 76,644 4.07 1,967,918 66,535 3.38 Noninterest-bearing demand deposits 1,071,900 1,074,292 Other liabilities 37,683 40,435 Total liabilities 2,991,299 3,082,645 Stockholders’ equity Common stock 13,738 13,541 Paid-in capital 162,811 159,523 Treasury stock (16,741 ) (16,741 ) Retained earnings 161,181 154,041 Accumulated other comprehensive loss (28,821 ) (36,419 ) Total stockholders’ equity attributable to parent 292,168 273,945 Noncontrolling interest (74 ) 76 Total stockholders’ equity 292,094 274,021 Total liabilities and stockholders’ equity $ 3,283,393 $ 3,356,666 Net interest spread (tax-equivalent) 2.15 % 2.82 % Net interest income and margin (tax-equivalent) 1 $ 109,916 3.67 % $ 124,229 4.04 % Less: Tax-equivalent adjustments $ (718 ) $ (946 ) Net interest spread 2.13 % 2.79 % Net interest income and margin $ 109,198 3.64 % $ 123,283 4.01 % 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 periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 13. 2 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate. 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. Selected Financial Data (Unaudited) (Dollars in thousands, except per share data) Quarterly Year-to-Date 2024 2024 2023 2024 2023 Fourth Quarter Third Quarter Fourth Quarter Earnings and Per Share Data: Net income $ 9,440 $ 2,080 $ 7,911 20,091 31,232 Earnings per share from continuing operations - basic $ 0.73 $ 0.16 $ 0.62 $ 1.56 $ 1.77 Earnings per share from discontinued operations - basic $ — $ — $ — $ — $ 0.69 Earnings per share - basic $ 0.73 $ 0.16 $ 0.62 $ 1.56 $ 2.46 Earnings per share from continuing operations - diluted $ 0.72 $ 0.16 $ 0.61 $ 1.53 $ 1.72 Earnings per share from discontinued operations - diluted $ — $ — $ — $ — $ 0.68 Earnings per share - diluted $ 0.72 $ 0.16 $ 0.61 $ 1.53 $ 2.40 Cash dividends paid per common share $ 0.17 $ 0.17 $ 0.17 $ 0.68 $ 0.68 Book value per common share $ 23.61 $ 23.44 $ 22.68 $ 23.61 $ 22.68 Tangible book value per common share 1 $ 23.37 $ 23.20 $ 22.43 $ 23.37 $ 22.43 Weighted-average shares outstanding - basic 12,937,364 12,927,962 12,740,193 12,890,161 12,694,206 Weighted-average shares outstanding - diluted 13,195,215 13,169,011 13,024,562 13,136,758 12,997,332 Performance Ratios: Return on average assets 2 1.2 % 0.3 % 1.0 % 0.6 % 0.9 % Return on average equity 2 12.7 % 2.8 % 11.6 % 6.9 % 11.4 % Net interest margin 3 4 3.46 % 3.61 % 4.06 % 3.67 % 4.04 % Efficiency ratio 5 6 72.8 % 88.7 % 79.6 % 80.4 % 82.3 % Overhead ratio 2 7 4.3 % 3.7 % 3.4 % 3.7 % 3.5 % Equity to assets 9.8 % 8.9 % 8.7 % 9.8 % 8.7 % Asset Quality Data and Ratios: Charge-offs $ 2,677 $ 1,392 $ 1,868 $ 7,757 $ 18,479 Recoveries $ 1,153 $ 681 $ 1,343 $ 3,357 $ 9,185 Net loan charge-offs to total loans 2 8 0.3 % 0.1 % 0.1 % 0.2 % 0.4 % Allowance for credit losses $ 19,663 $ 21,499 $ 22,124 $ 19,663 $ 22,124 Allowance for credit losses to total loans 9 0.94 % 0.99 % 0.95 % 0.94 % 0.95 % Nonperforming loans $ 24,607 $ 28,556 $ 8,267 $ 24,607 $ 8,267 Nonperforming loans to total loans 1.2 % 1.3 % 0.4 % 1.2 % 0.4 % Mortgage Company Equity Method Investees Production Data10: Mortgage pipeline $ 1,025,742 $ 1,048,865 $ 706,873 $ 1,025,742 $ 706,873 Loans originated $ 1,325,698 $ 1,469,223 $ 1,020,128 $ 5,228,415 $ 4,319,382 Loans closed $ 947,004 $ 937,333 $ 724,453 $ 3,366,493 $ 3,007,221 Loans sold $ 777,821 $ 655,668 $ 639,788 $ 2,988,639 $ 2,466,807 1 Common equity less total goodwill and intangibles per common share, a non-U.S. GAAP measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure included in the tables on page 13. 2 Annualized for the quarterly periods presented. 3 Net interest income as a percentage of average interest-earning assets. 4 Presented on a fully tax-equivalent basis, a non-GAAP financial measure. 5 Noninterest expense as a percentage of net interest income and noninterest income, a non-U.S. GAAP measure. 6 Includes net income from discontinued operations. 7 Noninterest expense as a percentage of average assets, a non-U.S. GAAP measure. 8 Charge-offs, less recoveries. 9 Excludes loans held for sale. 10 Information is related to Intercoastal Mortgage Company, LLC and Warp Speed Holdings LLC, entities in which MVB has an ownership interest that are accounted for as equity method investments. Non-GAAP Reconciliation: Net Interest Margin on a Full Tax-Equivalent Basis The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis: Three Months Ended Twelve Months Ended (Dollars in thousands) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net interest margin - U.S. GAAP basis Net interest income $ 24,904 $ 26,585 $ 31,107 $ 109,198 $ 123,283 Average interest-earning assets 2,887,516 2,947,073 3,054,958 2,997,951 3,077,717 Net interest margin 3.43 % 3.59 % 4.04 % 3.64 % 4.01 % Net interest margin - non-U.S. GAAP basis Net interest income $ 24,904 $ 26,585 $ 31,107 $ 109,198 $ 123,283 Impact of fully tax-equivalent adjustment 186 189 193 718 946 Net interest income on a fully tax-equivalent basis $ 25,090 $ 26,774 $ 31,299 $ 109,916 $ 124,229 Average interest-earning assets 2,887,516 2,947,073 3,054,958 2,997,951 3,077,717 Net interest margin on a fully tax-equivalent basis 3.46 % 3.61 % 4.06 % 3.67 % 4.04 % Non-U.S. GAAP Reconciliation: Tangible Book Value per Common Share and Tangible Common Equity Ratio (Unaudited) (Dollars in thousands, except per share data) December 31, 2024 September 30, 2024 December 31, 2023 Tangible Book Value per Common Share Goodwill $ 2,838 $ 2,838 $ 2,838 Intangibles 262 285 352 Total intangibles $ 3,100 $ 3,123 $ 3,190 Total equity attributable to parent $ 305,679 $ 303,086 $ 289,384 Less: Total intangibles (3,100 ) (3,123 ) (3,190 ) Tangible common equity $ 302,579 $ 299,963 $ 286,194 Tangible common equity $ 302,579 $ 299,963 $ 286,194 Common shares outstanding (000s) 12,945 12,928 12,758 Tangible book value per common share $ 23.37 $ 23.20 $ 22.43 Tangible Common Equity Ratio Total assets $ 3,128,704 $ 3,418,756 $ 3,313,882 Less: Total intangibles (3,100 ) (3,123 ) (3,190 ) Tangible assets $ 3,125,604 $ 3,415,633 $ 3,310,692 Tangible assets $ 3,125,604 $ 3,415,633 $ 3,310,692 Tangible common equity $ 302,579 $ 299,963 $ 286,194 Tangible common equity ratio 9.7 % 8.8 % 8.6 %

MVB Financial Corp. Announces Fourth Quarter and Full Year 2024 Results

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