MVB Financial Profit Collapses on Credit-Loss Provision

The Tip Desk · November 10, 2026 · 4 min read

Net income fell to $0.4 million, or $0.03 a share, after a $9.9 million provision as core FTE net interest margin reached 4.02%.

MVB Financial Corp. (MVBF), the holding company for MVB Bank, Inc., reported net income of $0.4 million, or $0.03 a share, for the third quarter of 2026, down from $12.3 million, or $0.93 diluted, in the second quarter. The company said the decline primarily reflected a $9.9 million provision for credit losses.

The provision more than doubled from $4.7 million in the prior quarter. Of a $17.6 million increase in nonperforming loans, $13.1 million was attributable to one acquisition-and-development land loan involving circumstances specific to the property and borrower. The company said nearly three quarters of that NPL increase and almost half of the provision were tied to that credit. The provision also reflected increased specific reserves on certain other credits, including exposures in the SBA portfolio, as well as loan growth and model factors.

Nonperforming loans totaled $46.8 million, or 1.9% of total loans, as of September 30, 2026, compared with $29.2 million, or 1.2%, as of June 30. Net charge-offs were $2.5 million, or 0.41% of average loans on an annualized basis, versus $1.4 million, or 0.23%, in the prior quarter. The allowance for credit losses rose to $36.2 million, or 1.44% of loans, from $28.2 million, or 1.14%. Criticized loans were 2.9% of total loans, compared with 3.1% at June 30. Classified loans were 2.0% of total loans, compared with 1.9%.

President and Chief Executive Officer Larry F. Mazza said the company continued to work through a legacy SBA portfolio that began winding down in 2022 and now totals approximately $23 million. He said criticized loans have declined approximately 45% since early 2025 and that the company has not observed broader deterioration across the loan portfolio.

Net interest income rose 1.0% to $32.6 million from the second quarter, despite a $2.3 million nonrecurring interest income benefit recognized in that prior quarter. Fully tax-equivalent net interest income was $32.7 million. Core FTE net interest margin expanded 15 basis points to 4.02% from 3.87%, after a 14 basis point expansion in the second quarter. FTE net interest margin was 4.02%, compared with 4.16% in the second quarter, which included the nonrecurring benefit.

Fintech Payments deposits increased 28.1% to $766.0 million, or 24.8% of total deposits, as the company onboarded four new fintech partners in the quarter, bringing year-to-date wins to nine. Total cost of funds declined 6 basis points to 2.07%. Total deposits were $3.09 billion, down 0.8% from the prior quarter-end after 7.4% growth in the second quarter. Noninterest-bearing deposits decreased $73.2 million and represented 32.3% of total deposits, compared with 34.4% as of June 30. The loan-to-deposit ratio increased to 81.6% from 79.6%.

Total loan balances increased $43.8 million, or 1.8%, to $2.52 billion, marking the sixth consecutive quarter of loan growth after 3.0% growth in the second quarter.

Total noninterest income declined $11.0 million, or 58.3%, to $7.8 million from $18.8 million, which included a $10.0 million pretax gain associated with a Fintech investment. Excluding that gain, noninterest income declined 10.5%, primarily due to seasonal declines in payment card and service charge income and lower equity method investment income, reflecting lower mortgage activity due to the increase in market interest rates. Payment card and service charge income declined 12.8% to $5.2 million, primarily reflecting seasonal gaming activity, but was up 39.6% from the third quarter of 2025.

Noninterest expense declined 1.9% to $29.8 million, reflecting continued expense discipline, benefits from previously implemented cost-reduction initiatives and the use of AI and automation.

The Community Bank Leverage Ratio, Tier 1 Risk-Based Capital Ratio and MVB Bank’s Total Risk-Based Capital Ratio were 9.7%, 11.3% and 12.6%, respectively, compared with 10.3%, 12.2% and 13.2% at the prior quarter-end. The tangible common equity ratio was 9.3%, versus 9.7%. Book value per common share was $25.35, and tangible book value per common share was $25.26, compared with $26.61 and $26.52 at June 30. The company said the decline in tangible book value per share primarily reflected an increase in accumulated other comprehensive loss from $18.0 million to $32.6 million.