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MF

MVB FINANCIAL CORP (MVBF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 headline EPS was $0.15 diluted on net income of $2.0M; results missed Wall Street EPS and revenue consensus as higher provisioning from late-quarter loan growth preceded the associated interest income ramp . EPS consensus was $0.26 and revenue consensus was $34.6M; actuals were $0.15 and ~$33.7M (NII + noninterest income), yielding a miss on both metrics* .
  • Core operating momentum improved: pre-tax, pre-provision income rose 3.5% QoQ, NIM (TE) expanded 3 bps to 3.69%, and noninterest income increased 13.4% QoQ, driven by mortgage equity method income .
  • Balance sheet inflected positively: loans grew 4.4% QoQ to $2.15B; deposits rose 8.5% QoQ to $2.80B with NIB at 37.4%; criticized loans fell 16.6% QoQ and net charge-offs declined to 0.04% annualized .
  • Capital return accelerated: MVBF repurchased 314,580 shares for $6.4M (avg. $20.28) under a new $10M authorization and maintained the $0.17 dividend, offering support to per-share value .
  • Stock reaction catalysts: visible loan/deposit re-acceleration, NIM stabilization, improving credit metrics vs. an EPS/revenue miss and step-up in provisioning; executive transition with new CFO could also shape narrative near term .

What Went Well and What Went Wrong

What Went Well

  • Positive operating leverage with cost stabilization: noninterest expense flat QoQ (-0.5%) at $28.6M while noninterest income rose 13.4% QoQ to $7.9M .
  • Net interest margin (TE) expanded 3 bps QoQ to 3.69% on improved earning asset mix and higher asset yields; loan yields rose while funding costs increased with seasonal mix shift .
  • Credit improved: criticized loans fell 16.6% QoQ; NCOs decreased to 0.04% annualized; ACL rose to 1.0% of loans, reinforcing reserves as growth resumed .

Quote: “The second quarter marked a positive turn in MVB’s operating fundamentals. Loan growth accelerated, following five consecutive quarters of contraction... We generated positive operating leverage, as our cost control initiatives continued to take hold.” — CEO Larry F. Mazza .

What Went Wrong

  • EPS/revenue misses vs consensus: EPS $0.15 vs $0.26; revenue proxy ~$33.7M vs $34.6M; miss reflected higher provisioning tied to late-quarter loan growth . Consensus values from S&P Global*.
  • Cost of funds rose 13 bps QoQ to 2.41% on deposit mix shifts and lower average NIB during the quarter; off-balance sheet deposits also declined seasonally, tempering funding benefits .
  • Efficiency ratio worsened YoY to 84.7% (83.3% in Q2’24) despite QoQ improvement in operating leverage, reflecting revenue pressure and elevated run-rate OpEx vs last year .

Financial Results

Headline P&L and Margin Metrics

MetricQ2 2024Q1 2025Q2 2025
Net Income ($M)$4.09 $3.58 $2.00
Diluted EPS ($)$0.31 $0.27 $0.15
Net Interest Income ($M)$27.57 $26.68 $25.78
Noninterest Income ($M)$7.14 $7.01 $7.95
Net Interest Margin (TE)3.75% 3.66% 3.69%
Cost of Funds2.54% 2.28% 2.41%
Provision for Credit Losses ($M)$0.25 $0.18 $1.99
Efficiency Ratio83.3% 85.2% 84.7%

Balance Sheet and Funding

MetricQ2 2024Q1 2025Q2 2025
Total Loans ($B)$2.21 $2.06 $2.15
Total Deposits ($B)$2.88 $2.58 $2.80
NIB Deposits ($B)$0.98 $1.03 $1.05
NIB % of Deposits34.1% 40.0% 37.4%
Loan-to-Deposit Ratio76.5% 79.9% 76.8%
Off-Balance Sheet Deposits ($B)$1.36 $1.52 $1.11

Asset Quality

MetricQ2 2024Q1 2025Q2 2025
NPLs ($M)$23.10 $20.27 $21.06
NCOs (annualized)0.2% 0.2% 0.04%
ACL / Loans1.00% 0.93% 0.97%
Criticized Loans (% of Loans)5.7% 6.6% 5.2%

Fee and Payment KPIs; Mortgage Investees

KPIQ2 2024Q1 2025Q2 2025
Payment Card + Service Charge Income ($M)$3.82 $4.99 $4.65
Equity Method Investments Income ($M)$0.48 $0.65 $2.32
Mortgage Pipeline ($M)$927.88 $1,078.84 $1,128.74
Loans Originated ($M)$1,383.41 $1,310.70 $1,352.60
Loans Closed ($M)$828.85 $888.02 $882.36
Loans Sold ($M)$639.04 $644.68 $699.04

Results vs Consensus (S&P Global)

MetricQ2 2024Q1 2025Q2 2025
EPS Consensus Mean ($)0.361*0.207*0.260*
EPS Actual ($)0.31 0.27 0.15
EPS Surprise ($)-0.05*+0.06*-0.11*
Revenue Consensus Mean ($M)37.89*34.48*34.61*
Revenue Actual ($M)~34.71 (NII+Noninterest) ~33.68 (NII+Noninterest) ~33.73 (NII+Noninterest)
Revenue Surprise ($M)-3.18*-0.80*-0.88*

Values marked with an asterisk (*) retrieved from S&P Global.

Note: We use reported Net Interest Income + Noninterest Income as a proxy for “revenue” to align with bank reporting; S&P revenue definitions may differ.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ2 2025$0.17 (Q1 2025) $0.17 (declared May 21) Maintained
Share repurchase authorizationAnnounced late May 2025None disclosedUp to $10M authorization New
Repurchases executedQ2 2025N/A314,580 shares; $6.4M at $20.28 avg. Execution update

No formal quantitative revenue, margin, expense, or tax-rate guidance was provided in the Q2 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Net interest margin driversNIM 3.46% in Q4; cost of funds fell 21 bps QoQ; mix shifts and lower loan balances pressured NIM . Q1 NIM rose to 3.66% on lower cost of funds and higher avg. earning assets .NIM (TE) 3.69%, +3 bps QoQ on mix shift toward higher-yield loans; cost of funds +13 bps QoQ on lower avg. NIB .Stabilizing/improving QoQ.
Deposits/NIB mix & seasonalityQ4 deposits -10.3% QoQ; NIB 34.9%; greater use of off-B/S networks . Q1 NIB 40.0% on tax-season inflows; deposits -4.1% QoQ .Deposits +8.5% QoQ; NIB 37.4%; off-B/S deposits -27.5% QoQ on seasonality .Seasonal normalization; growth resuming.
Loan growthLoans -3.3% QoQ in Q4; -1.8% QoQ in Q1 on muted demand .Loans +4.4% QoQ with stronger demand; timing late in quarter .Positive inflection.
CreditQ4 criticized loans 6.2% of loans; NPLs 1.2% . Q1 NPLs 1.0%; criticized 6.6% .Criticized 5.2%; NCOs 0.04% annualized; ACL 1.0% .Improving.
Fintech/payments & fee incomeQ4 fee income boosted by sale-leaseback; Victor revenues noted . Q1 card/service charges +30.6% QoQ; divestiture gain .Payment card/service charges $4.65M; mortgage equity income +$1.7M QoQ; compliance consulting down .Fee mix shifting; mortgage equity pickup.
Capital & TBVTCE ratio up to 9.7% in Q4; TBVPS $23.37 . Q1 TCE 10.2%; TBVPS $23.85 .TCE 9.3% (buybacks); TBVPS $23.68; CBLR 11.4% .Strong, absorbing buybacks.
Corporate/LeadershipQ4 added Chief Deposit Officer & CRO .New CFO (Mike Sumbs) and CAO; CEO reassumes President role .Management transition underway.

Management Commentary

  • Strategic focus: “Deposit growth of 8.5% shows execution of our overall strategy… We generated positive operating leverage… capital position remains strong, and overall asset quality improved” — CEO Larry F. Mazza .
  • On EPS miss: “Reported earnings fell short of expectations, primarily due to the timing of loan growth, which occurred late in the quarter, resulting in provisioning without the benefit of corresponding interest income” — CEO Larry F. Mazza .
  • Capital return: “We actively repurchased stock following the authorization of a $10 million share repurchase plan in late May” — CEO Larry F. Mazza .

Q&A Highlights

No earnings call transcript was available in our document corpus for Q2 2025; consequently, Q&A themes and any in-call guidance clarifications are unavailable for this period.

Estimates Context

  • Q2 2025: EPS $0.15 vs $0.26 consensus (miss), “revenue” proxy ~$33.7M vs $34.6M consensus (miss). Management cited late-quarter loan growth driving higher provisioning ahead of interest income accrual as the core driver of the EPS shortfall . Consensus values from S&P Global*.
  • Q1 2025: EPS $0.27 vs $0.21 consensus (beat); revenue proxy ~$33.7M vs $34.5M consensus (slight miss)* . Consensus values from S&P Global.
  • Q2 2024: EPS $0.31 vs $0.36 consensus (miss); revenue proxy ~$34.7M vs $37.9M consensus (miss)* .
  • Implication: Near-term estimate revisions likely to reflect higher loan growth trajectory (supportive to forward NII) but also a slightly higher run-rate cost of funds and provisioning pace tied to growth and mix; NIM stability and fee momentum (mortgage equity income, payments) are key swing factors into 2H25 .

Values marked with an asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Operating turn: NIM stabilization and renewed loan/deposit growth suggest improving core earnings power into 2H25 if funding mix normalizes and growth persists .
  • Earnings delta explained: EPS miss was principally timing/provision-driven as growth arrived late in the quarter; watch for sequential earnings uplift as those balances earn through .
  • Funding optics: QoQ rise in cost of funds tied to seasonal mix; monitor NIB mix trajectory and off-balance sheet flows for margin resilience .
  • Credit trending better: Lower criticized loans and minimal NCOs reduce downside tail risk; ACL to loans back to ~1.0% supports growth .
  • Capital return story: $10M buyback authorization with $6.4M deployed in Q2 and dividend maintained at $0.17 offers per-share support; be mindful of TCE ratio movement vs appetite for further deployment .
  • Leadership transition: New CFO and CAO, CEO reassuming President role; potential for sharpened strategic/execution focus and investor messaging .
  • Setup: Near-term stock drivers include confirmation of sustained loan growth, NIM traction, fee income mix (mortgage equity income and payments), and disciplined expenses; delivery on these could catalyze estimate stabilization and multiple support despite a soft Q2 print .