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MVB FINANCIAL CORP (MVBF)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered EPS of $0.27 diluted and net income of $3.6M; EPS beat Wall Street consensus meaningfully, while “revenue” was modestly below consensus, driven by expense discipline and lower funding costs offset by softer noninterest income versus Q4’s sale-leaseback gain . EPS consensus was $0.207 vs actual $0.27 (+31% surprise); revenue consensus was $34.48M vs actual $33.51M (-2.8% surprise)*. Values retrieved from S&P Global.
  • Net interest margin expanded 20 bps Q/Q to 3.66% (tax-equivalent), as cost of funds fell 28 bps to 2.28% on deposit mix shifts (higher NIB) despite slightly lower earning asset yields .
  • Noninterest expense fell 14.6% Q/Q on lower salaries and professional fees; NIB deposits rose 9.8% Q/Q to 40% of total, improving funding profile .
  • Capital actions and return signal confidence: $10M stock repurchase authorization in May and continued $0.17 dividend for Q2 2025 . Potential stock catalysts include buyback execution, continued NIM improvement, and sustained cost control.

What Went Well and What Went Wrong

What Went Well

  • Expense management: “We…made significant progress in managing our expense base, as we continue to right-size our cost structure,” highlighted by a 14.6% Q/Q decline in noninterest expense .
  • Funding mix and NIM: NIM (tax-equivalent) rose to 3.66% (+20bps Q/Q) as total cost of funds fell to 2.28% (-28bps) and NIB deposits increased to 40% of total; CEO cited “best-in-class funding profile” supporting NIM expansion .
  • Asset quality and capital: Nonperforming loans declined 18% Q/Q to $20.3M (1.0% of loans), TCE ratio rose to 10.2%; tangible book value per share increased to $23.85 .

What Went Wrong

  • Softer noninterest income vs Q4: Total noninterest income fell to $7.0M from $21.3M in Q4, driven by absence of prior quarter’s $11.8M sale-leaseback gain and lower mortgage equity income and loan sale gains .
  • Loan balances and demand: Loans declined 1.8% Q/Q to $2.06B on elevated payoffs and muted market demand; government contracting and renewable energy loans fell $37.3M Q/Q .
  • Deposits declined: Total deposits fell 4.1% Q/Q to $2.58B, primarily from lower brokered CDs; continued YoY deposit decline reflecting exit of digital asset program accounts .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Revenue ($USD Millions)$33.24 $46.18 $33.68
Diluted EPS ($)$0.16 $0.72 $0.27
Net Interest Margin (tax-equivalent) (%)3.61% 3.46% 3.66%
Total Cost of Funds (%)2.77% 2.56% 2.28%
Total Earning Asset Yield (%)6.32% 5.96% 5.91%

Notes:

  • “Total Revenue” shown as Net Interest Income + Noninterest Income as disclosed in company materials; minor differences vs S&P “Revenue” may reflect classification methodology .

KPIs

KPIQ3 2024Q4 2024Q1 2025
Loans ($USD Billions)$2.17 $2.10 $2.06
Total Deposits ($USD Billions)$3.00 $2.69 $2.58
NIB Deposits ($USD Billions, % of total)$0.99 (33.0%) $0.94 (34.9%) $1.03 (40.0%)
Loan-to-Deposit Ratio (%)72.3% 78.0% 79.9%
Off-Balance Sheet Deposits ($USD Billions)$1.44 $1.42 $1.52
Nonperforming Loans ($USD Millions, % loans)$28.6 (1.3%) $24.6 (1.2%) $20.3 (1.0%)
Provision for Credit Losses ($USD Millions)$1.0 $0.3 $0.2
Book Value per Share ($)$23.44 $23.61 $23.94
Tangible Book Value per Share ($)$23.20 $23.37 $23.85
TCE Ratio (%)8.8% 9.7% 10.2%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025$0.17 (Q4 2024) $0.17 Maintained
Dividend per shareQ2 2025$0.17 (Q1 2025) $0.17 Maintained
Stock Repurchase Authorization2025None disclosed$10M authorization New

No explicit quantitative guidance ranges for revenue, margins, OpEx, tax rate, or segments were provided in Q1 materials .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in our document catalog or on the IR site (Q1 investor presentation posted; no transcript link visible) . Themes below reflect press releases across periods.

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Payments strategy and Fintech“Laser focus on payments,” growth in payments-related deposits; Victor subsidiary contributed to other income Payment card and service charge income up $1.2M Q/Q (+30.6%); seasonal banking-as-a-service volume boosted balances Improving monetization
Deposit mix/NIBNIB 33.0% (Q3); 34.9% (Q4); mix shifting with off-balance sheet networks NIB 40.0%; cost of funds down 28 bps Q/Q Positive mix shift
Digital asset program exitEPS impact in Q3; lower cash balances and other operating income YoY declines in NIB reflect full exit; funding costs benefited Q/Q Completed, residual effects fading
Capital ratios/TCECBLR/Tier 1/TRBC improving; TCE 9.7% in Q4 TCE 10.2%; buyback authorized Strengthening capital return
Asset qualityNPL up in Q3 (multifamily loan), improved in Q4 NPL down to 1.0% of loans; net charge-offs 0.2% annualized Stabilizing/improving

Management Commentary

  • “Our best-in-class funding profile supported meaningful expansion in our net interest margin and growth in net interest income.” — Larry F. Mazza, CEO .
  • “We…right-size our cost structure…asset quality metrics improved, our strong liquidity position was preserved and our capital base further strengthened providing the flexibility to deploy capital opportunistically.” — Larry F. Mazza .
  • On Q4 transition: “We simplified our growth strategy…strengthened our team…laser focus on payments continues to drive meaningful progress.” — Larry F. Mazza .

Q&A Highlights

  • No Q1 2025 earnings call transcript was available to extract Q&A themes; the company posted a Q1 2025 Investor Presentation but no transcript link was present on the IR events page .

Estimates Context

MetricConsensus (Q1 2025)Actual (Q1 2025)Surprise
Primary EPS Consensus Mean ($)0.2067*0.27*+30.6%*
Revenue Consensus Mean ($USD Millions)34.48*33.51*-2.8%*
# of EPS Estimates3*——
# of Revenue Estimates3*——

S&P Global disclaimer: Values retrieved from S&P Global.

Reference actuals from company disclosures: diluted EPS $0.27 ; company-reported NII + noninterest income of $33.68M aligns closely with S&P’s revenue actual methodology .

Key Takeaways for Investors

  • EPS beat on funding cost reductions and disciplined expense control; watch for durability of NIM expansion as deposit mix continues to improve .
  • Noninterest income normalization following Q4’s sale-leaseback gain explains headline revenue softness vs consensus; core payments-driven fee income is trending higher .
  • Capital return actions (buyback authorization and sustained dividend) underscore management’s confidence and provide near-term support to the equity story .
  • Asset quality improved materially Q/Q with lower NPLs and modest provisioning; continued vigilance warranted given criticized/classified loan trends .
  • Deposit strategy (higher NIB, off-balance sheet networks) is lowering funding costs and enhancing capital efficiency—key to medium-term ROA/ROE improvement .
  • Loan growth remains muted; pipeline commentary from prior periods and Q1 production ($99.7M) suggest gradual rebuilding but payoffs remain a headwind .
  • Near-term trading implications: Expect focus on buyback execution and NIM trajectory; medium-term thesis hinges on scaling payments/Fintech fees while maintaining credit discipline and cost containment .