Sign in

You're signed outSign in or to get full access.

MF

MVB FINANCIAL CORP (MVBF)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered $17.1M net income and $1.32 diluted EPS, driven by a $34.1M pre-tax gain on the sale of Victor Technologies, partially offset by a $7.6M loss from securities repositioning; net interest income rose 3.1% sequentially while NIM fell 14 bps to 3.55% .
  • EPS sharply beat Wall Street consensus ($1.32 vs $0.28), while “revenue” (S&P’s operating revenue) also beat materially on divestiture gains; management expects the Victor sale plus securities repositioning to add $0.30–$0.35 to annualized EPS going forward [GetEstimates]* .
  • Core banking trends: loans +4.9% QoQ to $2.26B; deposits -1.0% QoQ to $2.78B; off-balance sheet deposits declined 17.5% QoQ reflecting Banking-as-a-Service relationship changes .
  • Capital remained strong (CBLR 11.1%, Tier 1 RBC 14.1%, Total RBC 15.0%); TBVPS rose 9.7% QoQ to $25.98; $10M repurchase completed and a new $10M program authorized on Oct 27, 2025, providing potential stock support catalysts .

What Went Well and What Went Wrong

What Went Well

  • Strategic monetization: Sold Victor Technologies to Jack Henry, generating a $34.1M pre-tax gain; CEO called the quarter “transformative” and a “validation” of the fintech incubator model .
  • EPS accretion outlook: Securities repositioning plus Victor sale expected to add $0.30–$0.35 to annualized EPS, strengthening forward earnings power .
  • Loan growth and capital strength: Loans +4.9% QoQ to $2.26B; TBVPS up 9.7% QoQ to $25.98; capital ratios remained well above regulatory thresholds .

What Went Wrong

  • Margin compression: NIM declined 14 bps QoQ to 3.55% due to lower asset yields (loan prepayments, lower cash yields post Fed funds rate cut) and higher average interest-bearing deposits balance .
  • Asset quality mixed: Nonperforming loans rose to $26.2M (1.2% of loans) due to a single C&I credit; provision increased to $4.4M reflecting specific reserves, a fintech investment write-down, CECL qualitative updates, and loan growth .
  • Deposit dynamics: Total deposits -1.0% QoQ; off-balance sheet deposits -17.5% QoQ given declines in certain BaaS relationships; NIB ratio edged down to 37.0% .

Financial Results

EPS, “Revenue” (S&P), and Margins vs Prior Periods and Estimates

MetricQ1 2025Q2 2025Q3 2025
Diluted EPS ($) Actual$0.27 $0.15 $1.32
Diluted EPS ($) Consensus Mean$0.21*$0.26*$0.28*
“Revenue” ($USD Millions, S&P definition) Actual$33.51*$31.74*$56.76*
“Revenue” ($USD Millions) Consensus Mean$34.48*$34.61*$35.96*
Net Interest Margin % (TE)3.66% 3.69% 3.55%
Efficiency Ratio %85.2% 84.7% 54.5%

Values with asterisks are retrieved from S&P Global.

Company Net Interest Income and Noninterest Income

MetricQ1 2025Q2 2025Q3 2025
Net Interest Income ($USD Millions)$26.68 $25.78 $26.57
Total Noninterest Income ($USD Millions)$7.01 $7.95 $34.61

Balance Sheet and Mix

MetricQ1 2025Q2 2025Q3 2025
Loans ($USD Billions)$2.06 $2.15 $2.26
Deposits ($USD Billions)$2.58 $2.80 $2.78
NIB Deposits (% of Total)40.0% 37.4% 37.0%
Loan-to-Deposit Ratio (%)79.9% 76.8% 81.4%

Segment/Category Breakdown – Noninterest Income

Category ($USD Millions)Q1 2025Q2 2025Q3 2025
Payment Card & Service Charges$4.99 $4.65 $3.75
Equity Method Investments$0.65 $2.32 $2.40
Compliance & Consulting$0.50 $0.01 $0.06
Investment Portfolio Gains (Losses)($0.31) ($0.17) ($6.64)
Gain on Divestiture Activity$0.61 $0.00 $34.09
Other Noninterest Income$0.99 $1.23 $1.01
Total Noninterest Income$7.01 $7.95 $34.61

KPIs and Capital

KPIQ1 2025Q2 2025Q3 2025
Off-Balance Sheet Deposits ($USD Billions)$1.52 $1.11 $0.91
Nonperforming Loans ($USD Millions)$20.27 $21.06 $26.21
Provision for Credit Losses ($USD Millions)$0.18 $1.99 $4.43
Net Charge-Offs ($USD Millions)$0.90 $0.20 $0.70
CBLR (%)10.9% 11.4% 11.1%
Tier 1 RBC (%)15.5% 14.6% 14.1%
Total RBC (%)16.4% 15.5% 15.0%
Book Value per Share ($)$23.94 $23.78 $26.07
Tangible Book Value per Share ($)$23.85 $23.68 $25.98

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Annualized EPS Accretion from Victor Sale + Securities RepositioningOngoingNot provided~$0.30–$0.35 to annualized EPS New
Dividend per ShareQuarterly$0.17$0.17 (Q3 declared) Maintained
Share Repurchase Program2025$10M (May 2025) – Completed New $10M program authorized Oct 27, 2025 Initiated (New Program)

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call transcript was not available via our document tools; themes below reflect prepared remarks and press releases.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3)Trend
Fintech Strategy/IncubationQ1: Repositioning business model; divestiture of Trabian for gain . Q2: Operating leverage improvements; pipeline building .Strategic sale of Victor to Jack Henry; $34.1M gain; CEO: “transformative” validation of incubator model .Accelerating monetization and validation
Net Interest MarginQ1: NIM up 20 bps to 3.66% on lower funding costs . Q2: NIM up to 3.69% on mix shift .NIM down 14 bps to 3.55% on lower asset yields and deposit mix (Fed cut, loan prepayments) .Softening near term
Deposits/BaaS SeasonalityQ1: Deposits down; NIB up to 40% amid tax seasonality . Q2: Deposits up; off-balance sheet deposits down on seasonality .Deposits -1% QoQ; off-balance sheet deposits -17.5% on BaaS changes; NIB 37% .Normalizing/lower off-balance sheet
Capital ActionsQ1: TBV ratio improved; dividend $0.17 . Q2: $6.4M repurchases; $10M authorization .$10M repurchases completed; new $10M program authorized Oct 27 .Ongoing shareholder returns
Securities RepositioningNo prior specific repositioning; portfolio management discussed .Sold ~$72.5–$73M AFS; pre-tax loss ~$7.6M; reinvested ~$70.8M at ~5.1% yield .Enhancing earnings power
Asset QualityQ1: NPLs down; charge-offs moderated . Q2: Criticized loans down; low charge-offs .NPLs up to 1.2% due to one C&I credit; provision increased; allowance to 1.03% .Mixed (specific issue; broader criticized down)

Management Commentary

  • “The third quarter was transformative for MVB… a powerful validation of our Fintech incubator model… strengthening our balance sheet and expanding our strategic flexibility.” — Larry F. Mazza, CEO and President .
  • “The securities portfolio repositioning, combined with expense efficiencies expected from the Victor sale, position us to deliver $0.30 to $0.35 in additional annualized earnings per share going forward.” — Larry F. Mazza .
  • “Net interest income increased on robust loan activity… our loan pipeline is solid entering the fourth quarter… we proactively strengthened our balance sheet by bolstering our allowance for credit losses.” — Larry F. Mazza .
  • On repositioning strategy: “This repositioning accelerates our path to stronger earnings and positions MVB for enhanced profitability.” — Larry F. Mazza .

Q&A Highlights

  • Transcript unavailable through our tools; however, management clarified key drivers in the release: NIM decline from lower earning asset yields (loan prepayment effects, lower cash yields post Fed cut) and deposit mix changes .
  • Asset quality context: a single well-secured manufacturing C&I credit drove NPLs higher; provision also included a $1.0M fintech investment write-down and CECL qualitative enhancements .
  • Capital deployment clarity: completion of $10M repurchase and a new $10M authorization provide optionality alongside portfolio repositioning .

Estimates Context

MetricQ1 2025Q2 2025Q3 2025
EPS Consensus Mean ($)0.21*0.26*0.28*
EPS Actual ($)0.27 0.15 1.32
Revenue Consensus Mean ($USD Millions)34.48*34.61*35.96*
Revenue Actual ($USD Millions, S&P)33.51*31.74*56.76*
  • Q3 2025 results reflect a significant EPS beat versus consensus and a revenue beat driven by the divestiture gain; expect models to incorporate ongoing EPS accretion from portfolio actions and Victor sale, while normalizing noninterest income post one-time gains [GetEstimates]* .
    Values with asterisks are retrieved from S&P Global.

Key Takeaways for Investors

  • Strong beat catalyst: Q3 EPS of $1.32 materially exceeded consensus ($0.28) on Victor sale gains; expect near-term rerating and estimate revisions, with sustainable EPS uplift from repositioning initiatives [GetEstimates]* .
  • Core banking momentum: Net interest income +3.1% QoQ and loans +4.9% QoQ suggest improving core trends despite NIM pressure; watch loan pipeline into Q4 .
  • Margin outlook: NIM headwinds from lower asset yields and deposit mix may persist; reinvestment at ~5.1% yields and deposit mix management are key to stabilization .
  • Asset quality watch: NPL uptick tied to one C&I credit; allowance increased to 1.03%; monitor credit migration vs criticized/classified loan downtrend .
  • Capital returns: Completed $10M buyback and new $10M authorization provide support; TBVPS up 9.7% QoQ enhances downside protection .
  • Deposit dynamics: Off-balance sheet deposits fell 17.5% QoQ on BaaS changes; investors should track fee income and liquidity impacts .
  • Strategy validation: Fintech incubator monetization and securities optimization materially improved earnings trajectory; focus shifts to execution of core growth and disciplined credit .

Values with asterisks are retrieved from S&P Global.

Citations: Q3 2025 8-K earnings release –; Q3 2025 press release –; Q2 2025 8-K –; Q1 2025 8-K –; Stock repurchase program PR (Oct 27, 2025) ; Securities repositioning PR (Oct 6, 2025) ; Victor sale PR (Oct 1, 2025) .