MVB Financial Reports Diluted EPS of $0.03 as Credit Provision Rises to $9.9 Million
Key Facts
MVB Financial reported net income of $0.4 million and basic and diluted earnings of $0.03 per share in its third-quarter 2026 results statement. Revenue was $40.43 million, exceeding the estimate of $39.10 million by $1.33 million. Revenue growth therefore contrasted with the company’s profitability during the period. The company attributed earnings pressure mainly to a rise in the provision for credit losses to $9.9 million, compared with $4.7 million in the previous quarter. The results also highlighted an increase in nonperforming loans, alongside growth in some measures of interest and payments activity.
Nonperforming loans totaled $46.8 million, or 1.9% of total loans, on September 30, 2026, compared with $29.2 million and 1.2% on June 30. The company said the $17.6 million quarterly increase was largely tied to one land financing loan in the acquisition and development category. That loan accounted for $13.1 million of the total increase. The figures indicate that this financing made up most of the rise recorded during the quarter. Meanwhile, loans classified as special mention fell to 2.9% of total loans in September, from 3.1% in June.
The chief executive said the company had not seen broader deterioration in its loan portfolio, alongside a decline in the share of loans classified as special mention. On interest income, net interest income was up 18.1% year to date. The tax-equivalent adjusted net interest margin was 4.02% in the third quarter, up 15 basis points for the quarter. These measures point to improvement in parts of core banking activity, while credit provisions weighed on net income. Payment card and service fee income was $5.2 million, down 12.8% from the previous quarter due to seasonality, but up 39.6% from the third quarter of 2025.
Fintech-related payments deposits rose to $766 million, up 28.1% from the previous quarter and 55.4% from the same period a year earlier. The company added four new partners in this area during the quarter, bringing the number of new partners since the start of the year to nine, compared with five for all of 2025. Deposit and partnership growth represents an expansion in payments activity, which is linked to card income and service fees. On costs, noninterest expense fell 1.9% to $29.8 million. The company attributed the decline to expense controls, cost-reduction initiatives, and the use of artificial intelligence and automation to improve efficiency.