FAIRMONT, W.Va.--(BUSINESS WIRE)-- #banking--MVB Financial Corp. today announced that its Board of Directors has declared a quarterly cash dividend of $0.17 per share. ...

MVB Financial (MVBF) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.92%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced a loss of $0.24, delivering a surprise of -182.76%.Over the last four quarters, the company ha ...

Financial Performance - MVB Financial reported a net income of $4.2 million for Q4 2025, translating to $0.33 basic and $0.32 diluted earnings per share[2]. - Net interest income increased by 6.8% to $28.4 million, with a net interest margin expansion of 17 basis points to 3.70%[3]. - Noninterest income for Q4 2025 was $10.7 million, a decline of 69.1% from the prior quarter due to a previous gain on the sale of Victor Technologies[8]. - The company reported a gain on divestiture activity of $160 million in Q4 2025, significantly lower than the $34,086 million reported in Q3 2025, indicating a strategic shift in asset management[21]. - Net income for the twelve months ended December 31, 2025, was $26,940,000, an increase from $20,091,000 in 2024, representing a growth of 34.4%[28]. - Cash dividends paid per common share remained stable at $0.68 for both 2025 and 2024[28]. Loan and Deposit Growth - Total loan balances reached $2.34 billion, reflecting a growth of $83.8 million, or 3.7%, from the previous quarter[7]. - Total deposits increased by $66.0 million, or 2.4%, to $2.84 billion at the end of Q4 2025[7]. - Loans receivable increased to $2,343,163 million as of December 31, 2025, from $2,259,386 million in September 2025 and $2,100,131 million in December 2024, indicating growth in lending activities[23]. - Noninterest bearing deposits rose to 40.3% of total deposits, up from 37.0% in Q3 2025[7]. - Loans originated during the twelve months totaled $5,664,857,000, an increase from $5,228,415,000 in 2024, marking an 8.4% growth[28]. Asset Management - Total assets as of December 31, 2025, were $3,308,918 million, an increase from $3,232,953 million in September 2025 and $3,128,704 million in December 2024[23]. - Total assets decreased slightly to $3,257,111,000 in 2025 from $3,283,393,000 in 2024, a decline of 0.8%[26]. - Tangible assets for Q4 2025 were $3,307,718,000, slightly up from $3,231,753,000 in Q3 2025[32]. Credit Quality - Net charge-offs were $3.9 million, or 0.68% annualized of total loans, compared to $0.7 million, or 0.12% in the prior quarter[9]. - The provision for credit losses totaled $2.1 million, down from $4.4 million in the previous quarter[9]. - The allowance for credit losses decreased to $21,827 million as of December 31, 2025, from $23,322 million in September 2025, suggesting improved credit quality[23]. - Nonperforming loans increased to $30,655,000, up from $24,607,000 in 2024, representing a rise of 24.9%[28]. - The allowance for credit losses was $21,827,000, compared to $19,663,000 in 2024, reflecting an increase of 11%[28]. Operational Efficiency - The efficiency ratio improved to 72.8% for the twelve months ended December 31, 2025, down from 80.4% in 2024, showing enhanced operational efficiency[28]. - The net interest margin for the twelve months ended December 31, 2025, was 3.63%, compared to 3.64% in 2024, indicating a slight contraction[28]. Equity and Book Value - Book value per common share increased by 0.7% to $26.26 as of December 31, 2025[8]. - The book value per common share increased to $26.26 in 2025 from $23.61 in 2024, a growth of 11.2%[28]. - Tangible book value per common share increased to $26.17 in Q4 2025 from $25.98 in Q3 2025 and $23.37 in Q4 2024[32]. - Total equity attributable to the parent rose to $333,968,000 in Q4 2025, up from $327,752,000 in Q3 2025 and $305,679,000 in Q4 2024[32]. - Tangible common equity ratio remained stable at 10.1% for both Q4 2025 and Q3 2025, compared to 9.7% in Q4 2024[32]. Interest Income - The net interest income for Q4 2025 was $28,502 million, with a margin of 3.71%, compared to $26,753 million and 3.55% in Q3 2025, reflecting improved profitability[25]. - Net interest income for Q4 2025 was $28,379,000, an increase from $26,573,000 in Q3 2025, and $24,904,000 in Q4 2024[30]. - The net interest margin on a fully tax-equivalent basis for Q4 2025 was 3.71%, compared to 3.55% in Q3 2025 and 3.46% in Q4 2024[30]. - The impact of fully tax-equivalent adjustment on net interest income was $123,000 for Q4 2025[30].

Core Viewpoint - MVB Financial (MVBF) is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $0.31 per share, reflecting a year-over-year decrease of 56.9% [3] - Revenues are projected to be $34.9 million, down 24.4% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not reassessed their initial estimates during this period [4] - MVB Financial's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -14.75%, suggesting a bearish outlook from analysts [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from the consensus estimate, with positive readings being more reliable [9][10] - MVB Financial currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [12] Historical Performance - In the last reported quarter, MVB Financial was expected to post earnings of $0.29 per share but instead reported a loss of -$0.24, resulting in a surprise of -182.76% [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Conclusion - MVB Financial does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17]

Core Insights - Affirm Holdings, Inc. has applied to create its own banking entity, Affirm Bank, aiming to deepen its integration into the banking sector and transform credit and payment solutions for consumers and merchants [1][2] - The establishment of Affirm Bank is intended to foster sustainable growth through a federally insured framework, broadening the availability of transparent financial tools that prioritize user interests [2][4] Company Strategy - The new subsidiary will operate alongside Affirm's current operations and partnerships, providing increased adaptability and variety in offerings, potentially leading to innovative products and services [3][9] - Max Levchin, Affirm's CEO, emphasized the strategic importance of this initiative to fortify the company's platform and enhance access to straightforward financial options for individuals [4][9] Financial Impact - Since its inception, Affirm has facilitated nearly $130 billion in credit extensions, serving around 60 million individuals without imposing delayed or concealed charges, contrasting with traditional credit cards [5][6] - Estimates suggest that American families could have avoided $18 billion in costs during 2024 by utilizing Affirm's evaluation methods and fee-free structure [6] Leadership and Oversight - John Marion has been appointed as the president of the proposed bank, bringing over 25 years of experience in banking and fintech from major institutions [7] - The subsidiary will feature autonomous oversight and internal safeguards, supported by a seasoned leadership team well-versed in banking regulations [8] Industry Evolution - Affirm Bank could represent a pivotal evolution for the buy-now-pay-later (BNPL) industry, blending innovative lending with traditional banking stability to better serve a digital economy [9]

Core Insights - A Las Vegas bank, GBank, is advancing its strategy to leverage cashless payments in gambling through the approval of the BoltBetz system by the Nevada Gaming Control Board [1][4] - The BoltBetz app enables users to transfer funds from a GBank-controlled digital wallet to slot machines, creating a new source of non-interest-bearing deposits for GBank [2][3] Company Overview - GBank, with assets of $1.3 billion, is positioned to benefit from the BoltBetz system, which is expected to enhance its deposit base and earnings potential [1][3] - The bank's leadership includes Ed Nigro, who has extensive ties to the casino industry and was recently appointed CEO [15][16] Product and Technology - The BoltBetz app will be available on major platforms and allows for seamless fund transfers between players' accounts and slot machines, distinguishing it from other cashless gaming platforms [2][5] - GBank is upgrading its internal technology to manage the anticipated increase in transaction volume as BoltBetz is implemented [7] Market Strategy - The initial rollout of BoltBetz is limited to nine Las Vegas taverns, but there are plans for broader expansion, supported by strategic partnerships with gaming operators [1][4] - Former boxing champion Mike Tyson is involved as a strategic investor and promotional partner, enhancing the app's visibility [4] Regulatory Environment - The approval from the Nevada Gaming Control Board is seen as a significant advantage for future expansion into other states, although regulatory approval is required in each state [8][9] - The cashless nature of BoltBetz may provide regulatory benefits, particularly in anti-money-laundering efforts [11] Financial Implications - GBank anticipates that the partnership with BoltBetz will lead to significant deposit growth, which will support its banking operations, including its Small Business Administration lending program [13] - GBank aims to increase its SBA loan origination to over $600 million in the 2026 fiscal year [14]

Core Viewpoint - Bank of Marin Bancorp is expected to report a fourth-quarter loss due to the sale of $595 million in low-yielding securities, but this strategic move is anticipated to enhance future profitability through reinvestment in higher-yielding assets [1][2][9] Financial Performance - The company disclosed the securities sale last week and expects an after-tax loss of $59 million for the three months ending December 31, but will gain an $8.3 million pre-tax boost to annual earnings going forward [2] - In the third quarter, Bank of Marin reported a net income of $7.5 million [3] Strategic Initiatives - As part of the transaction, Bank of Marin reclassified its $812 million held-to-maturity securities portfolio as available-for-sale and executed a $45 million private placement of subordinated debt to mitigate the capital impact of the securities sale [4] - The average yield of the sold securities was 2.03%, significantly lower than the current Fed Funds target rate of 3.75% to 4% [5] Industry Context - Many banks have undertaken similar repositioning efforts over the past three years to offload low-yielding assets, indicating a broader trend in the banking industry [5] - Other banks, such as MVB Financial and Washington Trust Bancorp, have also sold securities with low yields, reflecting a common strategy among financial institutions [6] Future Outlook - Analysts expect Bank of Marin's tangible book value growth to exceed 10% in both 2026 and 2027, a significant increase from the approximately 2% growth in the last 12 months [8] - Profitability ratios are projected to improve, with estimated return on assets rising to 0.96% from 0.80% and return on tangible common equity increasing to 11.4% from 8.2% [8] - The bond sale is expected to result in a fourth-quarter loss but should significantly enhance profitability in the future [9]

MVB Financial Corp FY Conference Summary Company Overview - **Company**: MVB Financial Corp (NasdaqCM: MVBF) - **Market Position**: A $3.5 billion bank with a focus on fintech and digital banking, operating in 40 states with a diverse client base including Fortune 500 companies [4][25][39] Core Business Strategy - **Purpose and Values**: MVB aims to be trusted partners on the financial frontier, emphasizing values of love, trust, commitment, and adaptivity [5][9][10] - **Business Segments**: 1. **Tech-Forward Banking**: Traditional banking services with a modern approach [10] 2. **Bankers of Choice for Fintech**: Serving major gaming companies like DraftKings and FanDuel, holding 84% of the gaming market [12][25] 3. **Builders of Fintech**: Development of proprietary technology like Victor, which enhances payment processing for clients [13][14] 4. **Backers of Fintech**: Investments in fintech companies to strengthen service offerings [15] Growth Catalysts - **Banking as a Service**: Partnership with Credit Karma, managing 6 million relationships and aiming to increase average savings rates significantly [16][17] - **Fintech-Sponsored Lending**: Collaborating with fintechs to provide loans without holding them on the balance sheet, thus minimizing credit risk [36][37] - **Payments**: Engaging in various payment modalities, including stablecoin transactions, which offer lower costs and faster processing [18][19][28] Financial Performance - **Market Capitalization**: Approximately $330 million, trading at about one times tangible book value and over 10 times forward earnings [25] - **Shareholder Returns**: A 2% dividend yield and a recent $10 million share repurchase program, indicating confidence in stock value [26][40] - **Deposit Base**: $2.8 billion in deposits, with 37% being non-interest bearing, showcasing a strong liquidity position [34] Compliance and Operational Efficiency - **Compliance Focus**: A significant investment in compliance, with a reduction in compliance staff from 160 to 117 through AI implementation, aiming for further reductions [20][41] - **Operational Excellence**: Emphasis on leveraging AI for efficiency, particularly in compliance and risk management [41] Market Dynamics - **Industry Trends**: The banking sector is experiencing consolidation, with a decrease in community banks from 6,000 to about 3,000 [22][23] - **Competitive Landscape**: MVB operates in a niche market with limited competition, focusing on fintech partnerships rather than traditional banking [45][47] Future Outlook - **Pipeline Growth**: A robust pipeline with 14 signed clients and 52 in earlier stages, indicating strong demand for MVB's services [32][33] - **Asset Quality**: Strong asset quality with low charge-offs and a solid capital foundation, positioning MVB for continued growth [38][39] Conclusion MVB Financial Corp is strategically positioned in the fintech space, leveraging technology and partnerships to drive growth while maintaining a strong focus on compliance and operational efficiency. The company's unique approach and market positioning provide a promising outlook for future performance and shareholder returns.

Core Insights - MVB Bank has received five new awards in 2025 for its strong workplace culture and employee satisfaction [1][19] - The bank ranked sixth out of 28 banks in the $3-$10 billion assets category on American Banker's Best Banks to Work For list, marking its fifth consecutive year on the list [2][3] - MVB Bank has also achieved Great Place to Work Certification for the fourth consecutive year, indicating a commitment to employee experience [3][4] Awards and Recognition - MVB Bank was recognized as one of the Best Places to Work for Women and Best Places to Work in West Virginia, highlighting its focus on equity and retention of female talent [4] - Virginia Business ranked MVB as number 27 on its Best Places to Work list, emphasizing the bank's culture of empowerment, trust, and commitment to core values [5] Employee Satisfaction Metrics - Awards assess employee satisfaction in areas such as corporate culture, education and development opportunities, pay and benefits, company policies, and leadership satisfaction [6]

Financial Performance - Net income attributable to the parent for the three months ended September 30, 2025, was $17,136 thousand, a substantial increase from $2,080 thousand in 2024, reflecting an increase of 720.77%[16] - Earnings per common shareholder (basic) rose to $1.36 for the three months ended September 30, 2025, compared to $0.16 in 2024, an increase of 750%[16] - Net income for the nine months ended September 30, 2025, was $22,697,000, compared to $10,807,000 for the same period in 2024, representing a significant increase[22] - The company reported a net income of $17.1 million for the three months ended September 30, 2025, compared to $2.1 million for the same period in 2024[153] - For the nine months ended September 30, 2025, net income was $22.7 million, up from $10.7 million for the same period in 2024[155] Asset Growth - Total assets increased to $3,232,953 thousand as of September 30, 2025, up from $3,128,704 thousand at December 31, 2024, representing a growth of 3.33%[14] - Total stockholders' equity increased to $327,752,000 as of September 30, 2025, from $289,384,000 at December 31, 2023, reflecting a growth of approximately 13.3%[20] - Total assets increased by $104.2 million during the nine months ended September 30, 2025, with the equity to assets ratio rising to 10.1% from 9.8% at December 31, 2024[209] Deposits - Total deposits reached $2,776,078 thousand as of September 30, 2025, up from $2,693,615 thousand at December 31, 2024, indicating a growth of 3.07%[14] - Total deposits increased to $2.78 billion at September 30, 2025, from $2.69 billion at December 31, 2024, with Fintech deposits rising to $1.10 billion[200] - Off-balance sheet deposits totaled $911.6 million as of September 30, 2025, down from $1.42 billion at December 31, 2024, primarily representing the gaming and banking-as-a-service industries[205] Income and Expenses - Net interest income after provision for credit losses for the three months ended September 30, 2025, was $22,146 thousand, compared to $25,626 thousand for the same period in 2024, a decrease of 13.73%[15] - Total noninterest expenses for the three months ended September 30, 2025, were $33,331 thousand, compared to $29,485 thousand in 2024, an increase of 13.93%[15] - Total noninterest expenses for the nine months ended September 30, 2025, were $90,601, an increase from $88,606 in 2024, reflecting a rise of 2.2%[142] Credit Losses - Provision for credit losses increased to $4,427 thousand for the three months ended September 30, 2025, compared to $959 thousand in 2024, an increase of 361.66%[15] - The allowance for credit losses stood at $23,322 thousand as of September 30, 2025, up from $19,663 thousand at December 31, 2024, an increase of 18.06%[14] - The provision for credit losses for the three months ended September 30, 2025, was $3,209 thousand, compared to $5,370 thousand for the same period in 2024, indicating a decrease of about 40.2%[80] Loan Portfolio - As of September 30, 2025, total loans amounted to $2,260,041 thousand, an increase from $2,099,117 thousand as of December 31, 2024, representing a growth of approximately 7.67%[48] - The commercial loan segment reached $1,592,801 thousand as of September 30, 2025, up from $1,416,856 thousand at the end of 2024, indicating an increase of about 12.43%[48] - The total for home equity lines of credit loans was $10.476 million, with no charge-offs reported[67] Noninterest Income - Noninterest income surged to $34,612 thousand for the three months ended September 30, 2025, compared to $6,657 thousand in the same period of 2024, marking a significant increase of 419.57%[15] - For the nine months ended September 30, 2025, noninterest income totaled $49.6 million, an increase of $27.9 million from $21.6 million in the prior year, driven by a $34.7 million gain on divestitures and a $5.3 million increase in equity method investment income[181] Market and Economic Conditions - The bank expects potential economic volatility over the next one to two years, impacting credit loss estimates[72] - The company is preparing to adopt new accounting standards related to income tax disclosures effective after December 15, 2024, which may impact footnote disclosures but not the consolidated financial statements materially[37] Stockholder Activities - The company executed a stock buyback program, repurchasing common stock worth $10,018,000 during the nine months ended September 30, 2025[22] - The company plans to repurchase up to $10 million of its common stock starting in November 2025[147] Risk Management - The Bank engages an external consultant to conduct independent loan reviews annually, targeting 35% to 40% of the Bank's commercial outstanding loan balances for review[65] - The company is actively monitoring the performance and credit quality of its loan portfolio by analyzing the past due status of the portfolio[70]