10-Q

United States
Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

(Mark One)

S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

£TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________.

Commission File number 333-120931

MVB Financial Corp.

(Exact name of registrant as specified in its charter)

West Virginia	20-0034461
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

301 Virginia Avenue

Fairmont, West Virginia 26554-2777

(Address of principal executive offices)

304-363-4800

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant has (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

Yes ý       No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ý       No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company     ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes o     No ý

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:

As of August 14, 2012, the number of shares outstanding of the issuer’s only class of common stock was 2,246,838.

MVB Financial Corp.
Part I.	Financial Information
Item 1.	Financial Statements
	The unaudited interim consolidated financial statements of MVB Financial Corp. and Subsidiaries (MVB or “the Company”) listed below are included on pages 2-22 of this report.
	Consolidated Balance Sheets at June 30, 2012 and December 31, 2011
	Consolidated Statements of Income for the Six and Three Months ended June 30, 2012 and 2011
	Consolidated Statements of Comprehensive Income for the Six Months and Three ended June 30, 2012 and 2011
	Consolidated Statements of Cash Flows for the Six Months ended June 30, 2012 and 2011
	Notes to Consolidated Financial Statements
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Management’s Discussion and Analysis of Financial Condition and Results of Operations are included on pages 23-34 of this report.
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.
Item 4.	Controls and Procedures
Part II.	Other Information
Item 1.	Legal Proceedings
Item 1.a.	Risk Factors
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3.	Defaults Upon Senior Securities
Item 4.	Mine Safety Disclosures
Item 5.	Other Information
Item 6.	Exhibits

1

Part I. Financial Information

Item 1. Financial Statements

MVB Financial Corp. and Subsidiaries

Consolidated Balance Sheets

(Dollars in thousands, except Share and Per Share Data)

	June 30			December 31
	2012			2011
	(Unaudited)			(Note 1)
Assets
Cash and due from banks	$	12,017		$	9,763
Interest bearing balances		8,797			278
Certificates of deposits in other banks		9,427			9,918
Investment securities:
Securities held-to-maturity, at amortized cost		16,506			13,568
Securities available-for-sale, at fair value		94,830			99,366
Loans:		424,089			373,822
Less: Allowance for loan losses		(3,480	)		(3,045	)
Net loans		420,609			370,777
Loans held for sale		2,647			7,147
Bank premises, furniture and equipment, net Bank owned life insurance		7,828 8,231			7,782 8,076
Accrued interest receivable and other assets		7,303			6,806
Total assets	$	588,195		$	533,481
Liabilities
Deposits
Non-interest bearing	$	47,322		$	38,632
Interest bearing		410,418			351,913
Total deposits		457,740			390,545
Accrued interest, taxes and other liabilities		2,676			3,478
Repurchase agreements		64,320			77,835
Federal Home Loan Bank and other borrowings		9,652			9,767
Long-term debt		4,124			4,124
Total liabilities		538,512			485,749
Stockholders’ equity
Preferred stock, $1,000 par value, 8,500 shares authorized and issued		8,500			8,500
Common stock, $1 par value, 4,000,000 authorized,  2,246,838 and 2,234,767 issued, respectively		2,247			2,235
Additional paid-in capital		32,936			32,603
Treasury stock, 51,077 shares		(1,084	)		(1,084	)
Retained earnings		7,651			6,220
Accumulated other comprehensive (loss)		(567	)		(742	)
Total stockholders’ equity		49,683			47,732
Total liabilities and stockholders’ equity	$	588,195		$	533,481

See accompanying notes to unaudited financial statements.

2

MVB Financial Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited) (Dollars in Thousands except Share and Per Share Data)

	Six Months Ended				Three Months Ended
	June 30				June 30
	2012		2011		2012		2011
Interest income
Interest and fees on loans	$	9,223	$	7,737	$	4,635	$	3,987
Interest on deposits with other banks		109		49		51		13
Interest on investment securities – taxable		833		708		407		364
Interest on tax exempt loans and securities		625		414		318		206
Total interest income		10,790		8,908		5,411		4,570
Interest expense
Deposits		1,919		1,940		954		985
Repurchase agreements		243		233		129		124
FHLB and other borrowings		238		235		122		114
Long-term debt		44		40		22		20
Total interest expense		2,444		2,448		1,227		1,243
Net interest income		8,346		6,460		4,184		3,327
Provision for loan losses		1,350		630		675		330
Net interest income after provision for loan losses		6,996		5,830		3,509		2,997
Other income
Service charges on deposit accounts		339		293		178		163
Income on bank owned life insurance		156		128		78		81
Visa debit card income		225		203		114		107
Income on loans held for sale		1,068		273		638		180
Other operating income		446		231		258		126
Gain on sale of securities		73		356		7		207
Total other income		2,307		1,484		1,273		864
Other expense
Salary and employee benefits		4,119		3,091		2,163		1,669
Occupancy expense		413		315		209		173
Equipment expense		333		287		177		161
Data processing		217		105		129		69
Visa debit card expense		185		161		94		84
Advertising		349		162		182		87
Legal and accounting fees		184		141		68		77
Printing, stationery and supplies		91		85		57		48
Consulting fees		224		199		111		107
FDIC insurance		81		243		54		124
Other taxes		90		86		46		37
Other operating expenses		728		626		386		352
Total other expense		7,014		5,501		3,676		2,988
Income before income taxes		2,289		1,813		1,106		873
Income tax expense		611		511		289		237
Net income	$	1,678	$	1,302	$	817	$	636
Preferred stock dividends		94		—		21		—
Net Income available to common shareholders		1,584		1,302		796		636
Basic earnings per common share	$	0.73	$	0.62	$	0.34	$	0.29
Diluted earnings per common share	$	0.71	$	0.61	$	0.33	$	0.29
Basic weighted average shares outstanding		2,184,950		2,110,474		2,186,210		2,187,549
Diluted weighted average shares outstanding		2,235,007		2,146,615		2,236,267		2,223,690

See accompanying notes to unaudited financial statements.

3

MVB Financial Corp. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited) (Dollars in thousands)	Six Months Ended
	June 30			June 30
	2012			2011
Operating activities
Net income	$	1,678		$	1,302
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		1,350			630
Deferred income tax expense		44			106
Depreciation		260			224
Stock based compensation		79			57
Loans originated for sale		(50,067	)		(18,489	)
Proceeds of loans sold		54,567			18,286
Proceeds from sale of other real estate owned		30			312
Loss on sale of other real estate owned		2			—
(Gain) on sale of investment securities		(73	)		(356	)
Amortization, net of accretion		539			367
(Increase) in interest receivable and other assets		(843	)		(217	)
(Decrease) in accrued interest, taxes, and other liabilities		(802	)		(368	)
Net cash provided by operating activities		6,764			1,854
Investing activities
(Increase) in loans made to customers		(51,182	)		(35,898	)
Purchases of premises and equipment		(306	)		(181	)
(Increase)/decrease in interest bearing balances with banks, net		(8,519	)		5,778
Maturities of certificates of deposit in other banks		491			17,734
Purchases of investment securities available-for-sale		(27,244	)		(106,497	)
Proceeds from sales, maturities and calls of securities
available-for-sale		31,604			93,053
Proceeds from sales, maturities and calls of securities
held to maturity		—			1,000
Purchases of investment securities held-to-maturity		(2,938	)		—
Purchase of bank owned life insurance		—			(1,200	)
Net cash (used in) investing activities		(58,094	)		(26,211	)
Financing activities
Net increase in deposits		67,195			48,493
Net (decrease)/increase in repurchase agreements		(13,515	)		2,599
Proceeds from  Federal Home Loan Bank borrowings		56,495			47,201
Principal payments on Federal Home Loan Bank borrowings		(56,610	)		(65,936	)
Net proceeds of dividend reinvestment plan/stock offering		266			6,500
Cash dividend		(153	)		—
Dividends on preferred stock		(94	)		—
Net cash provided by financing activities		53,584			38,857
Increase in cash and cash equivalents		2,254			14,500
Cash and cash equivalents - beginning of period		9,763			3,713
Cash and cash equivalents - end of period	$	12,017		$	18,213
Cash payments for:
Interest on deposits, repurchase agreements and borrowings	$	2,412		$	2,531
Income taxes	$	527		$	467

See accompanying notes to unaudited financial statements.

4

MVB Financial Corp. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)(Dollars in thousands)
	June 30, 2012			June 30, 2011
Net Income		1,678			1,302
Other comprehensive income/(loss), net of tax:
Securities available for sale not other than temporarily impaired:
Gains during the year		290			410
Income tax effect		(116	)		(164	)
					—
					—
Other comprehensive income		174			246
Comprehensive income		1,852			1,548

See accompanying notes to unaudited financial statements.

5

MVB Financial Corp. and Subsidiaries

Notes to Consolidated Financial Statements

Note 1 – Basis of Presentation

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with instructions to Form 10-Q and Section 310(b) of Regulation SB. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for annual year-end financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation, have been included and are of a normal, recurring nature. The balance sheet as of December 31, 2011 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles. Operating results for the six and three months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

The accounting and reporting policies of MVB conform to accounting principles generally accepted in the United States and practices in the banking industry. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change. Actual results could differ from those estimates. All significant inter-company accounts and transactions have been eliminated in consolidation.

The consolidated balance sheet as of December 31, 2011 has been extracted from audited financial statements included in MVB’s 2011 filing on Form 10-K. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in MVB’s December 31, 2011, Form 10-K filed with the Securities and Exchange Commission.

Note 2. - Loans

The following table summarizes the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2012. Activity in the allowance is presented for the period ended June 30, 2012 (in thousands):

6

					Home						Credit
	Commercial		Residential		Equity			Installment			Card		Total
ALL balance 12/31/11	$2,164		$366		$249			$255			$11		$3,045
Charge-offs	(916)		-		(9)			(6)			-		(931)
Recoveries	2		-		2			12			-		16
Provision		1,303		53		(1	)		(14	)		9		1,350
ALL balance 6/30/12	$	2,553	$	419	$	241		$	247		$	20	$	3,480
Individually evaluated for impairment	$	683	$	16	$	—		$	24		$	—	$	723
Collectively evaluated for impairment	$	1,870	$	403	$	241		$	223		$	20	$	2,757

							Home						Credit
	Commercial			Residential			Equity			Installment			Card			Total
ALL balance 12/31/10	$	1,517		$	460		$	207		$	274		$	20		$	2,478
Charge-offs		(57	)		(289	)		(114	)		(29	)		(3	)		(492	)
Recoveries		4			—			10			16			—			30
Provision		432			190			41			(36	)		3			630
ALL balance 6/30/11	$	1,896		$	361		$	144		$	225		$	20		$	2,646
Individually evaluated  for impairment	$	1,313		$	33		$	35		$	13		$	3		$	1,397
Collectively evaluated for impairment	$	583		$	328		$	109		$	212		$	17		$	1,249

The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date.

The following table summarizes the primary segments of the loan portfolio as of June 30, 2012 (in thousands):

	Commercial		Residential		Home Equity		Installment		Credit Cards		Total
June 30, 2012
Total Loans	$	270,839	$	122,897	$	16,815	$	12,947	$	591	$	424,089
Individually evaluated for impairment	$	3,466	$	76	$	—	$	32	$	—	$	3,574
Collectively evaluated for impairment	$	267,373	$	122,821	$	16,815	$	12,915	$	591	$	420,515

7

The following table summarizes the primary segments of the loan portfolio as of December 31, 2011 (in thousands):

	Commercial		Residential		Home Equity		Installment		Credit Cards		Total
December 31, 2011
Total Loans	$	231,357	$	112,753	$	15,930	$	13,217	$	565	$	373,822
Individually evaluated for impairment	$	393	$	197	$	262	$	—	$	4	$	856
Collectively evaluated for impairment	$	194,307	$	71,489	$	14,072	$	12,830	$	490	$	293,188

8

Management evaluates individual loans in all of the commercial segments for possible impairment. Loans are considered to be impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Corporation also separately evaluates individual consumer and residential mortgage loans for impairment.

Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan's effective interest rate; (b) the loan's observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis.

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2012 (in thousands):

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
June 30, 2012	Investment		Allowance		Investment		Investment		Balance
Commercial	$	3,466	$	683	$	—	$	3,466	$	3,466
Residential		76		16		—		76		76
Home Equity		—		—		—		—		—
Installment		32		24		—		32		32
Credit Card		—		—		—		—		—
Total impaired loans	$	3,574	$	723	$	—	$	3,574	$	3,574

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2011 (in thousands):

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
Dec 31, 2011	Investment		Allowance		Investment		Investment		Balance
Commercial	$	2,597	$	758	$	—	$	2,597	$	2,597
Residential		76		10		—		76		76
Home Equity		9		9		—		9		9
Installment		140		100		—		140		140
Credit Card		—		—		—		—		—
Total impaired loans	$	2,822	$	877	$	—	$	2,822	$	2,822

9

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands):

	Six Months				Three Months
	June 30				June 30
	2012		2011		2012		2011
Average investment in impaired loans	$	3,799	$	361	$	3,573	$	875
Interest income recognized on an accrual basis on impaired loans	$	81	$	15	$	71	$	18

Management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as "Pass" rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. The portion of any loan that represents a specific allocation of the allowance for loan losses is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank's Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department performs an annual review of all commercial relationships $500,000 or greater. Confirmation of the appropriate risk grade is included in the review on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2012 and December 31, 2011 (in thousands):

			Special
June 30, 2012	Pass		Mention		Substandard		Doubtful		Total
Commercial	$	257,160	$	8,624	$	1,589	$	3,466	$	270,839
Residential		120,391		2,018		488		—		122,897
Home Equity		16,579		236		—		—		16,815
Installment		12,586		328		33		—		12,947
Credit Card		583		—		8		—		591
Total	$	407,299	$	11,206	$	2,118	$	3,466	$	424,089

			Special
Dec. 31, 2011	Pass		Mention		Substandard		Doubtful		Total
Commercial	$	218,353	$	7,752	$	2,655	$	2,597	$	231,357
Residential		111,105		1,157		491		—		112,753
Home Equity		15,750		96		75		9		15,930
Installment		12,806		242		29		140		13,217
Credit Card		565		—		—		—		565
Total	$	358,579	$	9,247	$	3,250	$	2,746	$	373,822

10

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2012 and December 31, 2011 (in thousands):

		Current	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Non- Accrual		Total Loans
June 30, 2012
Commercial	$	264,545	$	1,655	$	1,041	$	127	$	2,823	$	3,471	$	270,839
Residential		122,367		382		72		—		454		76		122,897
Home Equity		16,805		10		—		—		10		—		16,815
Installment		12,841		54		13		10		77		29		12,947
Credit Card		591		—		—		—		—		—		591
Total	$	417,149	$	2,101	$	1,126	$	137	$	3,364	$	3,576	$	424,089

		Current	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Non- Accrual		Total Loans
Dec 31, 2011
Commercial	$	225,618	$	448		2,836	$	2	$	3,286	$	2,453	$	231,357
Residential		111,022		1,593		—		62		1,655		76		112,753
Home Equity		15,846		—		84		—		84		—		15,930
Installment		12,888		138		26		2		166		163		13,217
Credit Card		565		—		—		—		—		—		565
Total	$	365,939	$	2,179	$	2,946		66	$	5,191	$	2,692	$	373,822

An allowance for loan losses ("ALL") is maintained to absorb losses from the loan portfolio. The ALL is based on management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

The Bank's methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank's ALL.

Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualified factors.

The classes described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. Commercial, Mortgage and Consumer pools currently utilize a rolling 12 quarters.

"Pass" rated credits are segregated from "Criticized" credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors.

11

Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volume and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint.

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

Historically, management has utilized an internally developed spreadsheet to track and apply the various components of the allowance.

The following table presents details related to loans identified as Troubled Debt Restructurings (TDRs) during the three months ended June 30, 2012:

	New TDRs (1)
	For the Six Months Ended						For the Period  Ended
	30-Jun-12						31-Dec-11
(Unaudited, dollars in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:		—		—		—		—		—		—
Land and construction		1		908		898		—		—		—
Other		—		1		103		103
Total commercial real estate		1		908		898		1		103		103
Commercial and industrial		—		—		—		—		—		—
Residential real estate		—		—		—		1		415		415
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total		1		908		898		2		518		518

^{(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.}

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Note 3. Borrowed Funds

The Company is a party to repurchase agreements with certain customers. As of June 30, 2012 and December 31, 2011, the Company had repurchase agreements of $64.3 million and $77.8 million.

The bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, Pennsylvania. Borrowings from the FHLB are secured by stock in the FHLB of Pittsburgh, qualifying first mortgage loans, mortgage-backed securities and certain investment securities. The remaining maximum borrowing capacity with the FHLB at June 30, 2012 was approximately $152.9 million.

Borrowings from the FHLB were as follows:	June 30 2012		Dec 31 2011
(dollars in thousands)
Fixed interest rate note, originating April 1999, due April 2014, interest of 5.41% is payable monthly.	$	1,000	$	1,000
Fixed interest rate note, originating January 2005, due January 2020, interest of 5.14% is payable in monthly installments of $11.		807		851
Fixed interest rate note, originating April 2002, due May 2017, interest of 5.90% is payable monthly.		623		631
Fixed interest rate note, originating July 2006, due July 2016, interest of 4.50% is payable in monthly installments of $8.		1,280		1,301
Fixed interest rate note, originating October 2006, due October 2021, interest of 5.20% is payable in monthly installments of $6.		1,057		1,068
Fixed interest rate note, originating February 2007, due February 2022, interest of 5.22% is payable in monthly installments of $5.		888		896
Fixed interest rate note, originating April 2007, due April 2022, interest of 5.18% is payable in monthly installments of $6.		1,005		1,015
Floating interest rate note, originating March 2003, due December 2011, interest of 0.00% payable monthly.		—		—
Fixed interest rate note, originating December 2007, due December 2017, interest of 5.25% is payable in monthly installments of $7.		992		1,005
Fixed interest rate note originating March 2008, due March 2013, interest of 2.37% payable quarterly.		2,000		2,000
	$	9,652	$	9,767

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In March 2007 the Company completed the private placement of $4 million Floating Rate, Trust Preferred Securities through its MVB Financial Statutory Trust I subsidiary (the “Trust”). The Company established the trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The proceeds from the sale of the Trust Preferred Securities will be loaned to the Company under subordinated Debentures (the “Debentures”) issued to the Trust pursuant to an Indenture. The Debentures are the only asset of the Trust. The Trust Preferred Securities have been issued to a pooling vehicle that will use the distributions on the Trust Preferred Securities to securitize note obligations. The securities issued by the Trust are includable for regulatory purposes as a component of the Company’s Tier I capital.

The Trust Preferred Securities and the Debentures mature in 30 years and are redeemable by the Company after five years. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 1.62% over the three month LIBOR Rate. The Company reflects borrowed funds in the amount of $4.1 million as of June 30, 2012 and 2011 and interest expense of $44 and $40 for the periods ended June 30, 2012 and 2011.

A summary of maturities of these borrowings over the next five years is as follows:

(dollars in thousands)

Year	Amount
2012	$	127
2013		2,234
2014		1,257
2015		271
2016		1,353
Thereafter		8,534
	$	13,776

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Note 4 – Net Income Per Common Share

MVB determines basic earnings per common share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is determined by dividing net income by the weighted average number of shares outstanding increased by the number of shares that would be issued assuming the exercise of stock options. At June 30, 2012 and 2011, stock options to purchase 172,880 and 148,423shares at anaverage price of $15.63 and $15.13, respectively, were outstanding. For the three months ended June 30, 2012 and 2011, the dilutive effect of stock options was 50,057and 36,141 shares, respectively.

Note 5 – Recent Accounting Pronouncements

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted.The Company has provided the necessary disclosure in Note 6.

In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The amendments in this Update improve the comparability, clarity, consistency, and transparency of financial reporting and increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate convergence of U.S. GAAP and IFRS, the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity was eliminated. The amendments require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. All entities that report items of comprehensive income, in any period presented, will be affected by the changes in this Update. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The amendments in this Update should be applied retrospectively, and early adoption is permitted.The Company has provided the necessary disclosure in the Statements of Comprehensive Income.

In September 2011, the FASB issued ASU 2011-09, Compensation-Retirement Benefits-Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan. The amendments in this Update will require additional disclosures about an employer’s participation in a multiemployer pension plan to enable users of financial statements to assess the potential cash flow implications relating to an employer’s participation in multiemployer pension plans. The disclosures also will indicate the financial health of all of the significant plans in which the employer participates and assist a financial statement user to access additional information that is available outside the financial statements. For public entities, the amendments in this Update are effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted. The amendments should be applied retrospectively for all prior periods presented.This ASU is not expected to have a significant impact on the Company’s financial statements.

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In December 2011, the FASB issued ASU 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate-a Scope Clarification. The amendments in this Update affect entities that cease to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt. Under the amendments in this Update, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20 to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness. That is, even if the reporting entity ceases to have a controlling financial interest under Subtopic 810-10, the reporting entity would continue to include the real estate, debt, and the results of the subsidiary's operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt. The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date. Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities. For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in this Update affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05. All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate

16

but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has provided the necessary disclosure in Statement of Comprehensive Income.

Note 6 – Fair Value of Financial Instruments

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

17

Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the assets and liabilities reported on the consolidated balance sheets at their fair value as of June 30, 2012 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All measurements are made on a recurring basis, with the exception of other real estate and impaired loans, which are measured on a non-recurring basis.

(In Thousands)	June 30, 2012
	Level I		Level II		Level III		Total
Assets:
Investment securities, available for sale		—		94,830		—		94,830
Other Real Estate Owned		—		—		142		142
Impaired Loans		—		—		3,574		3,574

(In Thousands)	December 31, 2011
	Level I		Level II		Level III		Total
Assets:
Investment securities, available for sale		—		99,366		—		99,366
Other Real Estate Owned		—				176		176
Impaired Loans		—		—		2,822		2,822

The following table presents additional quantitative information about assets measure at fair value on a non-recurring basis and for which MVB has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2012:
Impaired loans	3,574	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	0% to -50.0% (-25.2%) -1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	142	Appraisal of collateral (1),(3)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

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The following summarizes the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial instruments.

Short-term financial instruments: The carrying values of short-term financial instruments including cash and due from banks, interest bearing balances – FHLB, and certificates of deposit in other banks approximate the fair value of these instruments.

Securities: Estimated fair values of securities are based on quoted market prices, where available. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities.

Loans: The estimated fair values for loans are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for loans with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed.

Loans held for sale: Estimated fair values of loans held for sale approximate their fair values.

Bank Owned Life Insurance: Estimated fair values of bank owned life insurance approximate the cash surrender value of the policies.

Accrued interest receivable and payable: The carrying values of accrued interest receivable and payable approximate their estimated fair values.

Repurchase Agreements: The fair values of repurchase agreements approximate their carrying values.

Deposits: The estimated fair values of demand deposits (i.e., non interest bearing checking, NOW and money market), savings accounts and other variable rate deposits approximate their carrying values. Fair values of fixed maturity deposits are estimated using a discounted cash flow methodology at rates currently offered for deposits with similar remaining maturities. Any intangible value of long-term relationships with depositors is not considered in estimating the fair values disclosed.

FHLB and other borrowings: The fair values of FHLB and other borrowings are based upon rates currently available for borrowings with similar terms and maturities.

Long-term debt: The fair value of long-term debt approximates its fair value.

Off-balance sheet instruments: The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of agreements and the present credit standing of the counterparties. The amounts of fees currently charged on commitments and standby letters of credit are deemed significant, and therefore, the estimated fair values and carrying values are not shown.

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The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows:

					Fair Value Measurements at June 30, 2012
(Dollars in thousands)	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Cash and due from banks	$	12,017	$	12,017	$	12,017	$	—	$	—
Interest bearing balances and CDs		18,224		18,224		18,224		—		—
Securities available-for-sale		94,830		94,830		—		94,830		—
Securities held-to-maturity		16,506		17,248		—		17,248		—
Loans		424,089		438,508						438,508
Loans held for sale		2,647		2,647		—		—		2,647
Bank owned life insurance		8,231		8,231		8,231		—		—
Accrued interest receivable		1,969		1,969		1,969		—		—
	$	578,513	$	593,674		40,441		112,078		441,155
Financial liabilities:
Deposits	$	457,740	$	462,317		462,317		—		—
Repurchase agreements		64,320		64,320		64,320		—		—
FHLB and other Borrowings		9,652		10,781		10,781		—		—
Accrued interest payable		383		383		383		—		—
Long-term debt		4,124		4,124		4,124		—		—
	$	536,219	$	541,925	$	541,925		—		—

	December 31, 2011
(Dollars in thousands)	Carrying Value		Fair Value
Financial assets:
Cash and due from banks	$	9,763	$	9,763
Interest bearing balances		10,196		10,216
Securities available-for-sale		99,366		99,366
Securities held-to-maturity		13,568		14,144
Loans		373,822		388,027
Loans held for sale		7,147		7,147
Bank owned life insurance		8,076		8,076
Accrued interest receivable		1,582		1,582
	$	523,520	$	538,321
Financial liabilities:
Deposits	$	390,545	$	400,894
Repurchase agreements		77,835		77,861
FHLB and other Borrowings		9,767		11,027
Accrued interest payable		341		341
Long-term debt		4,124		4,124
	$	482,612	$	494,247

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Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

Note 7 – Investments

Amortized cost and approximate fair values of investment securities held-to-maturity at June 30, 2012, including gross unrealized gains and losses, are summarized as follows:

(Dollars in thousands)
								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Municipal securities	$	16,506	$	751	$	(9	)	$	17,248
	$	16,506	$	751	$	(9	)	$	17,248

Amortized cost and approximate fair values of investment securities held-to-maturity at December 31, 2011, including gross unrealized gains and losses, are summarized as follows:

(Dollars in thousands)
								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Municipal securities	$	13,568	$	587	$	(11	)	$	14,144
U.S. Agency securities		—		—		—			—
	$	13,568	$	587	$	(11	)	$	14,144

Amortized cost and approximate fair values of investment securities available-for-sale at June 30, 2012 are summarized as follows:

								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
U. S. Agency securities	$	41,208	$	710	$	(4	)	$	41,914
Mortgage-backed securities		52,450		361		(19	)		52,792
Other securities		124		—		—			124
	$	93,782	$	1,071	$	(23	)	$	94,830

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Amortized cost and approximate fair values of investment securities available-for-sale at December 31, 2011 are summarized as follows:

								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
U. S. Agency securities	$	51,165	$	710	$	(1	)	$	51,874
Mortgage-backed securities		47,319		198		(149	)		47,368
Other securities		124		—		—			124
	$	98,608	$	908	$	(150	)		99,366

The following tables summarize amortized cost and approximate fair values of securities by maturity:

	June 30, 2012
	Held to Maturity				Available for sale
			Approximate				Approximate
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	115	$	115	$	—	$	—
After one year, but within five		—		—		28,905		29,558
After five years, but within ten		5,957		6,326		30,858		31,018
After ten Years		10,434		10,807		34,019		34,254
Total	$	16,506	$	17,248	$	93,782	$	94,830

The Company's investment portfolio includes securities that are in an unrealized loss position as of June 30, 2012, the details of which are included in the following table. Although these securities, if sold at June 30, 2012 would result in a pretax loss of $32, the Company has no intent to sell the applicable securities at such market values, and maintains the Company has the ability to hold these securities until all principal has been recovered. Declines in the market values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company's ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of June 30, 2012, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in market value.

The following table discloses investments in an unrealized loss position:

At June 30, 2012 and December 31, 2011, total temporary impairment totaled $32 and $161, respectively.

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agencies(1)	$	3,038	$	(4	)	$	—	$	—
Mortgage-backed securities(3) (11)		5,905		(19	)		—		—
Municipal securities(4)		1,279		(9	)		—		—
	$	10,222	$	(32	)	$	—	$	—

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agencies(1)	$	4,999	$	(1	)	$	—	$	—
Mortgage-backed securities (16)		31,073		(128	)		3,124		(21	)
Municipal securities(3)		936		(11	)		—		—
	$	37,008	$	(140	)	$	3,124	$	(21	)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Private Securities Litigation Reform Act of 1995 indicates that the disclosure of forward-looking information is desirable for investors and encourages such disclosure by providing a safe harbor for forward-looking statements that involve risk and uncertainty. All statements other than statements of historical fact included in this Form 10-Q including statements in Management’s Discussion and Analysis of Financial Condition and Results of Operations are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. In order to comply with the terms of the safe harbor, the corporation notes that a variety of factors, (e.g., changes in the national and local economies, changes in the interest rate environment, competition, etc.) could cause MVB’s actual results and experience to differ materially from the anticipated results or other expectations expressed in those forward-looking statements.

At June 30, 2012 and 2011 and for the Six and Three Months Ended June 30, 2012 and 2011:

	Six Months Ended June 30						Three Months Ended June 30
	2012			2011			2012			2011
Net income to:
Average assets		.60	%		.60	%		.57	%		.57	%
Average stockholders’ equity		6.97			7.06			6.71			7.62
Net interest margin		3.14			3.13			3.11			3.10
Average stockholders’ equity to average assets		8.58			8.48			8.30			8.50
Total loans to total deposits (end of period)		92.65			94.43			92.65			94.43
Allowance for loan losses to total loans (end of period)		0.82			0.80			0.82			0.80
Efficiency ratio		65.84			69.25			67.36			71.30
Capital ratios:
Tier 1 capital ratio		13.65			13.84			13.65			13.84
Risk-based capital ratio		14.55			14.73			14.55			14.73
Leverage ratio		9.34			9.28			9.34			9.28
Cash dividends as a percentage of net income		N/A			N/A			N/A			N/A
Per share data:
Book value per common share (end of period)	$	18.33		$	17.39		$	18.33		$	17.39
Market value per common share  (end of period)*		22.50			20.00			22.50			20.00
Basic earnings per common share		.73			.62			.34			.29
Diluted earnings per common share		.71			.61			.33			.29

* Market value per share is based on MVB’s knowledge of certain arms-length transactions in the stock as MVB’s common stock is not traded on any market. There may be other transactions involving either higher or lower prices of which MVB is unaware.

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Introduction

The following discussion and analysis of the consolidated financial statements of MVB Financial Corp. is presented to provide insight into management’s assessment of the financial results. MVB has three wholly-owned second tier holding companies which own 100 percent of MVB Bank, Inc. (“the bank”). The bank is the primary financial entity in this discussion. Unless otherwise noted, this discussion will be in reference to the bank.

MVB Bank, Inc. was chartered by the State of West Virginia and is subject to regulation, supervision, and examination by the Federal Deposit Insurance Corporation and the West Virginia Department of Banking. The bank is not a member of the Federal Reserve System. The bank is a member of the Federal Home Loan Bank of Pittsburgh.

The bank began operations January 4, 1999, at 301 Virginia Avenue in Fairmont, West Virginia. MVB Bank, Inc. provides a full array of financial products and services to its customers, including traditional banking products such as deposit accounts, lending products, debit cards, automated teller machines, and safe deposit rental facilities. The bank opened a banking office in the Shop N Save supermarket in White Hall, WV during the second quarter of 2000. During August of 2005, the bank opened a full-service office at 1000 Johnson Avenue in Bridgeport, WV. In October of 2005 MVB Bank, Inc. purchased an office at 88 Somerset Boulevard in Charles Town, WV. The bank opened a full service office at 651 Foxcroft Avenue in Martinsburg, WV during August 2007. In the second quarter of 2011, MVB opened a banking office at 2400 Cranberry Square in Morgantown, WV.

This discussion and analysis should be read in conjunction with the prior year-end audited financial statements and footnotes thereto included in the Company’s filing on Form 10-K and the unaudited financial statements, ratios, statistics, and discussions contained elsewhere in this Form 10-Q.

Application of Critical Accounting Policies

MVB’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments. Application of certain accounting policies inherently requires a greater reliance on the use of estimates, assumptions and judgments and as such, the probability of actual results being materially different from reported estimates is increased. Estimates, assumptions, and judgments are necessary when assets and liabilities are required to be recorded at fair value, when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established, or when an asset or liability needs to be recorded contingent upon a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and the information used to record valuation adjustments for certain assets and liabilities are based either on quoted market prices or are provided by other third-party sources, when available. When third-party information is not available, valuation adjustments are estimated in good faith by management primarily through the use of internal forecasting techniques.

The most significant accounting policies followed by MVB are presented in Note 1 to the audited consolidated financial statements included in MVB’s 2011 Annual Report on Form 10-K. These policies, along with the disclosures presented in the other financial statement notes and in management’s discussion and analysis of operations, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective or complex judgments, and as such could be most subject to revision as new information becomes available.The allowance for loan losses represents management’s estimate of probable credit losses inherent in the loan portfolio. Determining the amount of the allowance for loan losses is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of estimated future cash flows, estimated losses in pools of homogeneous loans based on historical loss experience of peer banks, estimated losses on specific commercial credits, and consideration of

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current economic trends and conditions, all of which may be susceptible to significant change. The loan portfolio also represents the largest asset in the consolidated balance sheet. Note 1 to the consolidated financial statements in MVB’s 10-K describes the methodology used to determine the allowance for loan losses and a discussion of the factors driving changes in the amount of the allowance for loan losses is included in the Allowance for Loan Losses section of Management’s Discussion and Analysis in this quarterly report on Form 10-Q.

Results of Operations (dollars in thousands)

Overview of the Statement of Income

For the quarter ended June 30, 2012, MVB earned $817 compared to $636 in the second quarter of 2011. Net interest income increased by $857, other income increased by $409 and other expenses increased by $688. The increase in net interest income was driven mainly by the continued growth of the MVB balance sheet, with $91.5 million in average loan growth. Also contributing to the increase in net interest income was a decrease in interest expense of $16, despite an increase in average interest bearing liabilities of $98.1 million. This represented a decreased cost of funds of 29 basis points. The increase in other income was mainly the result of an increase in income on loans held for sale of $458 as a result of additional volume that MVB was able to produce with increased staffing in this area, specifically the Morgantown, WV office opened during the second quarter of 2011. The increase in other operating expenses was principally the result of increased salaries expense of $494, with the addition of the Morgantown office as well as additions in the areas of human resources, information technology, credit and additional staff at MVB’s new Operations Center, as well as increases for existing staff. Occupancy, Equipment and depreciation costs increased $52, the result of the additions of the Morgantown office and the Operations Center. Data processing costs increased $60 due to increased volume and increased usage of products available to save time and better automate processes. Advertising expense increased by $95 as MVB focused on the marketing of rewards checking.

Loan loss provisions of $675 and $330 were made for the quarters ended June 30, 2012 and 2011, respectively. The provision for loan losses, which is a product of management’s formal quarterly analysis, is recorded in response to inherent risks in the loan portfolio. Continued strong loan demand was the driver of the increased provision.

Non-interest income for the quarters ended June 30, 2012 and 2011 totaled $1.3 million and $864, respectively. The most significant portions of non-interest income are service charges on deposit accounts, which totaled $178 at June 30, 2012, an increase of $15 from the prior year despite significant changes in the regulatory environment and income on loans held for sale which totaled $638, an increase of $458 over the second quarter of 2011, the result of the increased volume from existing lenders as well as the addition of the Morgantown location.

Non-interest expense for the quarters ended June 30, 2012 and 2011 totaled $3.7 million and $3.0 million, respectively. The most significant increases were as discussed above.

For the six months ended June 30, 2011 MVB earned $1.7 million compared to $1.3 million for the same time period in 2011. This $376 increase is mainly the result of balance sheet growth in the areas of loans and investments as discussed above, resulting in an increase in net interest income after provision for loan losses of $1.2 million for the first six months of 2012. MVB’s other income increased $823, mainly the result of an increase in income on loans held for sale of $795 and total other expenses increased by $1.5 million, mainly in the areas of salaries, other expense, advertising, occupancy and data processing. Loan loss provisions of $1.3 million and $630 were made for the six months ended June 30, 2012 and 2011, respectively. This increase of $720 was due to continued strong loan demand.

Non-interest income for the six months ended June 30, 2012 and 2011 totaled $2.3 million and $1.5 million, respectively. This $823 increase was primarily the result of income from the sale of loans into the secondary market increasing by $795.

Non-interest expense for the six months ended June 30, 2012 and 2011 totaled $7.0 million and $5.5 million. The largest drivers of this $1.5 million increase were in the areas of salaries, other expenses, advertising, occupancy and data processing.

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Interest Income and Expense

Net interest income is the amount by which interest income on earning assets exceeds interest expense on interest-bearing liabilities. Interest-earning assets include loans and investment securities. Interest-bearing liabilities include interest-bearing deposits and repurchase agreements and Federal Home Loan Bank advances. Net interest income is the primary source of revenue for the bank. Changes in market interest rates, as well as changes in the mix and volume of interest-earning assets and interest-bearing liabilities impact net interest income.

Net interest margin is calculated by dividing net interest income by average interest-earning assets. This ratio serves as a performance measurement of the net interest revenue stream generated by the bank’s balance sheet. The net interest margin for the quarters ended June 30, 2012 and 2011 was 3.11% and 3.10% respectively. Cost of funds continues to decline, especially in the time deposit area. MVB has been very successful in gathering deposits through the offering of a higher rate NOW account called the broker buster account, as well as through retail rewards checking. Loan yields dropped by 49 basis points as a result of increased competition for high quality credits.

Management continuously monitors the effects of net interest margin on the performance of the bank. Growth and mix of the balance sheet will continue to impact net interest margin in future periods.

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Average Balances and Interest Rates

(Unaudited)(Dollars in thousands)

	Three Months Ended June  30, 2012								Three Months Ended June 30, 2011
				Interest								Interest
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Cost			Balance			Expense		Cost
Assets
Interest-bearing deposits in banks	$	3,744		$	4		0.53	%	$	17,266		$	10		0.23	%
Certificates of deposit in other banks		9,524			47		1.97			793			3		1.51
Investment securities		114,585			541		1.88			91,354			423		1.85
Loans:
Commercial		244,888			3,001		4.90			199,260			2,633		5.29
Tax exempt		17,149			185		4.32			13,863			145		4.18
Consumer		13,384			196		5.86			13,357			213		6.38
Real estate		135,501			1,437		4.24			92,939			1,143		4.92
Total loans		410,922			4,819		4.69			319,419			4,134		5.18
Total earning assets		538,805			5,411		4.02			428,832			4,570		4.26
Cash and due from banks		9,881								2,264
Other assets		19,972								18,870
Total assets	$	568,658							$	449,966
Liabilities
Deposits:
Non-interest bearing demand	$	43,557		$	—		—	%	$	34,103		$	—		—	%
NOW		180,925			421		0.93			136,047			330		0.97
Money market checking		33,552			42		0.50			38,414			92		0.96
Savings		22,866			33		0.58			13,105			13		0.40
IRAs		9,797			59		2.41			9,950			71		2.85
CDs		135,538			398		1.17			109,697			478		1.74
Repurchase agreements & FFS		69,236			129		0.75			53,842			124		0.92
FHLB and other borrowings		17,300			122		2.82			10,026			115		4.59
Long-term debt		4,124			22		2.13			4,124			20		1.94
Total interest-bearing liabilities		473,338			1,227		1.04			375,205			1,243		1.33
Other liabilities		3,073								2,398
Total liabilities		519,968								411,706
Stockholders’ equity
Preferred stock		8,500								—
Common stock		2,237								2,235
Paid-in capital		32,704								32,401
Treasury Stock		(1,084	)							(1,006	)
Retained earnings		7,047								5,014
Accumulated other comprehensive income		(714	)							(384	)
Total stockholders’ equity		48,690								38,260
Total liabilities and stockholders’ equity	$	568,658							$	449,966
Net interest spread							2.98								2.93
Impact of non-interest bearing funds on margin							.13								.17
Net interest income-margin				$	4,184		3.11	%				$	3,327		3.10	%

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Average Balances and Interest Rates

(Unaudited)(Dollars in thousands)

	Six Months Ended June  30, 2012								Six Months Ended June 30, 2011
				Interest								Interest
	Average			Income/		Yield/			Average			Income/		Yield/
	Balance			Expense		Cost			Balance			Expense		Cost
Assets
Interest-bearing deposits in banks	$	3,536		$	5		0.34	%	$	17,071		$	18		0.21	%
Certificates of deposit in other banks		9,705			104		2.14			4,240			31		1.46
Investment securities		114,064			1,085		1.90			82,313			828		2.01
Loans:
Commercial		240,771			5,993		4.98			193,229			5,083		5.26
Tax exempt		17,188			371		4.32			14,014			293		4.18
Consumer		13,338			401		6.01			13,463			454		6.74
Real estate		132,476			2,829		4.27			89,400			2,201		4.92
Total loans		403,773			9,594		4.75			310,106			8,031		5.18
Total earning assets		531,078			10,790		4.06			413,730			8,908		4.31
Cash and due from banks		10,377								2,511
Other assets		19,940								18,581
Total assets	$	561,395							$	434,822
Liabilities
Deposits:
Non-interest bearing demand	$	42,245		$	—		—	%	$	37,970		$	—		—	%
NOW		180,516			845		0.94			124,024			637		1.03
Money market checking		33,561			85		0.51			38,456			186		0.97
Savings		22,034			63		0.57			12,410			22		0.35
IRAs		9,768			122		2.50			10,104			144		2.85
CDs		134,049			803		1.20			107,564			951		1.77
Repurchase agreements & FFS		67,746			243		0.72			49,471			233		0.94
FHLB and other borrowings		15,827			238		3.01			11,463			235		4.10
Long-term debt		4,124			44		2.13			4,124			40		1.94
Total interest-bearing liabilities		467,625			2,444		1.04			357,616			2,448		1.37
Other liabilities		3,354								2,372
Total liabilities		513,224								397,958
Stockholders’ equity
Preferred stock		8,500								—
Common stock		2,236								2,158
Paid-in capital		32,661								31,166
Treasury Stock		(1,084	)							(1,006	)
Retained earnings		6,635								4,870
Accumulated other comprehensive income		(777	)							(324	)
Total stockholders’ equity		48,171								36,864
Total liabilities and stockholders’ equity	$	561,395							$	434,822
Net interest spread							3.02								2.94
Impact of non-interest bearing funds on margin							.12								.19
Net interest income-margin				$	8,346		3.14	%				$	6,460		3.13	%

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Non-Interest Income

Service charges on deposit accounts generate the core of the bank’s non-interest income. Non-interest income totaled $1.3 million in the second quarter of 2012 compared to $864 in the second quarter of 2011. This increase of $409 is mainly the result of an increase in income in loans held for sale of $458.

Service charges on deposit accounts continue to be the core of MVB’s other income and include mainly non-sufficient funds and returned check fees, allowable overdraft fees and service charges on commercial accounts.

The bank is continually searching for ways to increase non-interest income. Income from loans sold in the secondary market continues to be a major area of focus for MVB.

Non-Interest Expense

For the second quarter of 2012, non-interest expense totaled $3.7 million compared to $3.0 million in the second quarter of 2011. MVB’s efficiency ratio was 67.36% for the second quarter of 2012 compared to 71.30% for the second quarter of 2011. This ratio measures the efficiency of non-interest expenses incurred in relationship to net interest income plus non-interest income. The increased efficiency ratio is the result of the increased net interest income and increased income from the sale of loans held for sale during the second quarter of 2012.

Salaries and benefits totaled $2.2 million for the quarter ended June 30, 2012 compared to $1.7 million for the quarter ended June 30, 2011. This $494 increase in salaries and benefits is mainly the result of the addition of the Morgantown location, as well as additions in the information technology, human resources, credit and secondary market areas of the bank along with increases to existing employees. MVB had 130 full-time equivalent personnel at June 30, 2012 compared to 103 full-time equivalent personnel as of June 30, 2011. Management will continue to strive to find new ways of increasing efficiencies and leveraging its resources, while effectively optimizing customer service.

For the quarters ended June 30, 2012 and 2011, occupancy expense totaled $209 and $173, respectively. This $36 increase is the result of the addition of the Morgantown office and the Operations Center.

Advertising expense increased $95 as a result of increased focus on rewards checking and data processing expense increased by $60, the result of increased volume as well as the use of more products to better automate processes.

Return on Average Assets and Average Equity

Returns on average assets (ROA) and average equity (ROE) were .57% and 6.71% for the second quarter of 2012 compared to .57% and 7.62% in the second quarter of 2011.

Overview of the Statement of Condition

MVB’s interest-earning assets, interest-bearing liabilities, and stockholders’ equity changed significantly during the second quarter of 2012 compared to 2011. The most significant areas of change between the quarters ended June 30, 2012 and June 30, 2011 were as follows: investment securities increased from an average balance of $91.3 million to an average balance of $114.6 million, loans increased to an average balance of $410.9 million from $319.4 million, interest-bearing liabilities grew to an average balance of $473.3 million from $375.2 million and stockholders’ equity grew by $10.4 million to an average of $48.7 million. These trends reflect the continued growth of MVB in the investment, loan, deposit and capital areas.

Total assets at June 30, 2012 were $588.2 million or an increase of $54.7 million since December 31, 2011. The greatest areas of increase were $50.3 million in loan growth and $44.9 million in interest bearing balances.

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Deposits totaled $457.7 million at June 30, 2012 or an increase of $67.2 million since December 31, 2011. $28.5 million of this increase is the result of CDARS balances and $34.4 million is the result of increased broker buster checking accounts.

Repurchase agreements totaled $64.3 million and have declined by $13.5 million since December 31, 2011.

Stockholders’ equity has increased approximately $1.9 million from December 31, 2011 due to earnings for the six months ended June 30, 2012 of $1.7 million, the implementation of a dividend reinvestment plan that provided $266 in additional capital and other comprehensive income of $175, the result of an increase in value of the investment portfolio.

Cash and Cash Equivalents

Cash and cash equivalents totaled $12.0 million as of June 30, 2012 compared to $9.8 million as of December 31, 2011.

Total cash and cash equivalents fluctuate on a daily basis due to transactions in process and other liquidity and performance demands. Management believes the liquidity needs of MVB are satisfied by the current balance of cash and cash equivalents, readily available access to traditional and non-traditional funding sources, and the portions of the investment and loan portfolios that mature within one year. These sources of funds should enable MVB to meet cash obligations as they come due.

Investment Securities

Investment securities totaled $111.3 million as of June 30, 2012 and $112.9 million as of December 31, 2011. Government sponsored agency securities and mortgage backed securities comprise the majority of the portfolio.

Management monitors the earnings performance and liquidity of the investment portfolio on a regular basis through Asset/Liability Committee meetings. The group also monitors net interest income, sets pricing guidelines, and manages interest rate risk for the bank. Through active balance sheet management and analysis of the investment securities portfolio, the bank maintains sufficient liquidity to satisfy depositor requirements and the various credit needs of its customers. Management believes the risk characteristics inherent in the investment portfolio are acceptable based on these parameters.

Loans

The bank’s lending is primarily focused in the Marion, Harrison, Jefferson, Berkeley and Monongalia County areas of West Virginia, and consists primarily of commercial lending, retail lending, which includes single-family residential mortgages, and consumer lending.

Loan Concentration

At June 30, 2012, commercial loans comprised the largest component of the loan portfolio. The majority of commercial loans that are not secured by real estate are lines of credit secured by accounts receivable and equipment and obligations of states and political subdivisions. While the loan concentration is in commercial loans, the commercial portfolio is comprised of loans to many different borrowers, in numerous different industries but primarily located in our market areas.

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Allowance for Loan Losses

Management continually monitors the loan portfolio through review of the monthly delinquency reports and through the Loan Review Committee. The Loan Review Committee is responsible for the determination of the adequacy of the allowance for loan losses. Their analysis involves both experience of the portfolio to date and the makeup of the overall portfolio. Specific loss estimates are derived for individual loans based on specific criteria such as current delinquency status, related deposit account activity, where applicable, local market rumors, which are generally based on some factual information, and changes in the local and national economy. While local market rumors are not measurable or perhaps not readily supportable, historically, this form of information can be an indication of a potential problem. The allowance for loan losses is further based upon the internal risk rating assigned to the various loan types within the portfolio.

Funding Sources

MVB considers a number of alternatives, including but not limited to deposits, short-term borrowings, and long-term borrowings when evaluating funding sources. Traditional deposits continue to be the most significant source of funds for the bank, reaching $457.7 million at June 30, 2012.

Non interest bearing deposits remain a core funding source for MVB. At June 30, 2012, non-interest bearing deposits totaled $47.3 million compared to $38.6 million at December 31, 2011. Management intends to continue to focus on finding ways to increase the bank’s base of non-interest bearing funding sources.

Interest-bearing deposits totaled $410.4 million at June 30, 2012 compared to $351.9 million at December 31, 2011. Average interest-bearing liabilities totaled $473.3 million during the second quarter of 2012 compared to $375.2 million for the second quarter of 2011. Average non-interest bearing demand deposits totaled $43.6 million for the second quarter of 2012 compared to $34.1 million for the second quarter of 2011. Management will continue to emphasize deposit gathering in 2012 by offering outstanding customer service and competitively priced products. Management will also concentrate on balancing deposit growth with adequate net interest margin to meet MVB’s strategic goals.

Along with traditional deposits, MVB has access to both repurchase agreements, which are corporate deposits secured by pledging securities from the investment portfolio, and Federal Home Loan Bank borrowings to fund its operations and investments. At June 30, 2012, repurchase agreements totaled $64.3 million compared to $77.8 million at December 31, 2011. In addition to the aforementioned funds alternatives, MVB has access to more than $152.9 million through additional advances from the Federal Home Loan Bank of Pittsburgh and the ability to readily sell jumbo certificates of deposits to other banks as well as brokered deposit markets.

Liquidity

MVB recognizes the importance of liquidity in the day-to-day operations of the bank, and believes it is critical to have a plan for addressing liquidity in times of crisis, as well as prudently managing levels to maximize earnings. The bank has historically recognized the need for funding sources that go beyond the most important source which is retail deposit business. MVB has created a funding program that identifies various wholesale funding sources that may be used whenever appropriate. These sources include the following: FHLB advances, brokered deposits, CDARS, repurchase agreements, internet CDs through Qwickrate, the Federal Reserve discount window, State of West Virginia CD auctions, and fed funds purchased. Limits have been set as to how much MVB will utilize each identified source. MVB currently is taking advantage of all of the above, with the exception of fed funds purchased and the discount window. This allows the bank to lower funding costs slightly while documenting the availability of each.

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Current Economic Conditions

The current economic climate in West Virginia, and in particular in the five counties MVB focuses in is better than the national climate. Unemployment in the United States was 8.7% in February 2012 and 9.5% in February 2011. The unemployment levels in the five counties MVB operates in were as follows: Berkeley County unemployment was 8.8% in February 2012, compared to 10.0% in February 2011. Harrison County’s unemployment rate for February 2012 was 6.8% versus 8.7% in February 2011. Jefferson County’s unemployment rate improved from 7.6% in February 2011 to 5.9% in February 2012 and Marion County’s unemployment rate decreased from 8.5% in February of 2011 to 6.6% in February of 2012. Monongalia County’s unemployment rate decreased from 6.2% in February of 2011 to 5.2% in February of 2012. The numbers from all five counties continue to be significantly better than the national numbers.

MVB’s nonperforming loan information supports the fact that the West Virginia economy has not suffered as much as that of the nation as a whole. Nonperforming loans to total loans were 0.88% in June of 2012 versus 1.46% in June of 2011 and charge offs to total loans were 0.22% and 0.15% for each period respectively. MVB continues to closely monitor economic and delinquency trends.

Capital/Stockholders’ Equity

The bank was initially capitalized when it sold 452,000 shares of stock at $10 per share or a total of $4.5 million in an offering during 1998.

In October of 1999 the bank completed a secondary offering of 66,000 shares of stock at $11 per share or a total of $726,000. This offering was used to purchase MVB’s main office at 301 Virginia Avenue.

During November of 2002 the bank completed another secondary offering of 164,000 shares of stock at $12.50 per share or a total of $2.0 million. This offering was needed to continue funding the bank’s growth.

In 2004, the bank formed a one-bank holding company. In that transaction, MVB Financial Corp. issued shares of common stock in exchange for shares of the bank’s common stock.

In 2006, MVB completed a public offering of 725,000 shares totaling $11.6 million.

In March 2007, MVB formed a statutory business trust for the purpose of issuing $4 million in trust preferred capital securities with the proceeds invested in MVB Bank, Inc. This was done primarily to increase the lending limit of the bank. The securities mature in 30 years and are redeemable by the Company after five years. The securities are at an interest cost of 1.62% over the three month LIBOR rate which is reset quarterly.

In April 2008, MVB completed a public offering of more than 100,000 shares which provided 2.4 million in additional capital.

In late December 2010 MVB began a confidential offering to accredited investors that resulted in the issuance of 393,305 shares of common stock totaling $8.3 million in additional capital. This offering was completed during the first quarter of 2011.

On September 8, 2011, MVB received $8.5 million in Small Business Lending Fund (SBLF) capital. MVB issued 8,500 shares of $1,000 per share preferred stock, with dividends payable quarterly in arrears on January 1, April 1, July 1 and October 1 each year. At the time of receipt of the SBLF money, MVB’s loan production qualified it for the lowest dividend possible at 1%. MVB may continue to utilize the SBLF capital for a period of four and one half years at the 1% dividend rate so long as loan growth continues to support the reduced rate.

During the second quarter of 2012, MVB instituted a dividend reinvestment plan (DRIP) whereby current shareholders can reinvest their dividends into MVB stock, rather than receiving cash, as well as add as much as $50 to their current investment. MVB added $266 in additional capital through the DRIP in the second quarter of 2012.

At June 30, 2012, accumulated other comprehensive (loss) totaled $(567) compared to $(742) at December 31, 2011.

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Treasury stock shares totaled 51,077 shares.

The primary source of funds for dividends to be paid by MVB Financial Corp. is dividends received from its subsidiary bank, MVB Bank, Inc. Dividends paid by the subsidiary bank are subject to restrictions by banking regulations. The most restrictive provision requires regulatory approval if dividends declared in any year exceed that year’s retained net profits, as defined, plus the retained net profits, as defined, of the two preceding years.

Bank regulators have established “risk-based” capital requirements designed to measure capital adequacy. Risk-based capital ratios reflect the relative risks of various assets banks hold in their portfolios. A weight category of 0% (lowest risk assets), 20%, 50%, or 100% (highest risk assets) is assigned to each asset on the balance sheet. Detailed information concerning MVB’s risk-based capital ratios can be found in Note 14 of the Notes to the Consolidated Financial Statements of MVB’s 2011 Form 10-K. At June 30, 2012, MVB and its banking subsidiary’s risk-based capital ratios exceeded the minimum standards for a well capitalized financial institution.

Commitments

In the normal course of business, the bank is party to financial instruments with off-balance sheet risk necessary to meet the financing needs of customers and to manage its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The contract or notional amounts of these instruments express the extent of involvement the bank has in these financial instruments.

Loan commitments are made to accommodate the financial needs of MVB’s customers. MVB uses the same underwriting standards in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant, and equipment, and income-producing commercial properties. The total amount of loan commitments outstanding at June 30, 2012 and December 31, 2011 was $51.2 million and $47.0 million, respectively.

Market Risk

There have been no material changes in market risks faced by MVB since December 31, 2011. For information regarding MVB’s market risk, refer to MVB’s Annual Report to Shareholders for the year ended December 31, 2011.

Effects of Inflation on Financial Statements

Substantially all of the bank’s assets relate to banking and are monetary in nature. Therefore they are not impacted by inflation to the same degree as companies in capital-intensive industries in a replacement cost environment. During a period of rising prices, a net monetary asset position results in loss in purchasing power and conversely a net monetary liability position results in an increase in purchasing power. In the banking industry, typically monetary assets exceed monetary liabilities. Therefore as prices increase, financial institutions experience a decline in the purchasing power of their net assets.

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Future Outlook

The bank’s results of operations in the second quarter of 2012 are an improvement over the second quarter of 2011 mainly due to the improvement in net interest income. MVB’s emphasis in future periods will be to do those things that have made the bank successful thus far. The critical challenge for the bank in the future is to attract core deposits to fund growth in the new markets through continued delivery of the most outstanding customer service with the highest quality products and technology.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

No response required.

Item 4. Controls and Procedures

The Company, under the supervision and with the participation of the Company’s management, including the Company’s President and Chief Executive Officer, along with the Company’s Chief Financial Officer (the Principal Financial Officer), has evaluated the effectiveness as of June 30, 2012, of the design and operation of the Company’s disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, the Company’s President and Chief Executive Officer, along with the Company’s Principal Accounting Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2012.

There have been no material changes in the Company’s internal control over financial reporting during the second quarter of 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

34

Part II. Other Information

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

No response required.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

(a) The following exhibits were filed with Form SB-2 Registration Statement, Registration No. 333-120931, filed December 1, 2004, and are incorporated by reference herein.

Exhibit  3.1	Articles of Incorporation
Exhibit  3.1-1	Articles of Incorporation – Amendment
Exhibit  3.2	Bylaws

(b) The following exhibits are filed herewith.

Exhibit 31.1	Certificate of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certificate of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certificate of principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certificate of principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

August 14, 2012	MVB Financial Corp.
	By:	/s/ Larry F. Mazza
		Larry F. Mazza
		President and Chief Executive Officer
	By:	/s/ Eric L. Tichenor
		Eric L. Tichenor
		Chief Financial Officer

36

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Larry F. Mazza, certify that:

1. I have reviewed this Form 10-Q of MVB Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

/s/ Larry F. Mazza

Larry F. Mazza
Chief Executive Officer

August 14, 2012

37

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Eric L. Tichenor, certify that:

1. I have reviewed this Form 10-Q of MVB Financial Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

/s/ Eric L. Tichenor

Eric L. Tichenor
Chief Financial Officer

August 14, 2012

38

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U. S. C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In Connection with the Quarterly Report of MVB Financial Corp. (the “Company”) on Form 10-Q for the period ending June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Larry F. Mazza, Chief Executive Officer of the Company, to the best of my knowledge and belief, certify, pursuant to Section 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Larry F. Mazza              

Larry F. Mazza

Chief Executive Officer

August 14, 2012

39

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U. S. C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In Connection with the Quarterly Report of MVB Financial Corp. (the “Company”) on Form 10-Q for the period ending June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric L. Tichenor, Chief Financial Officer of the Company, to the best of my knowledge and belief, certify, pursuant to Section 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Eric L. Tichenor        

Eric L. Tichenor

Chief Financial Officer
August 14, 2012

40

XML

Investments (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value	$ 94,830	$ 99,366
U.S. Agency securities
Amortized Cost	41,208	51,165
Gross Unrealized Gains	710	710
Unrealized loss	(4)	(1)
Fair Value	41,914	51,874
Mortgage backed securities
Amortized Cost	52,450	47,319
Gross Unrealized Gains	361	198
Unrealized loss	(19)	(149)
Fair Value	52,792	47,368
Other securities
Amortized Cost	124	124
Gross Unrealized Gains
Unrealized loss
Fair Value	124	124
Debt Securities
Amortized Cost	93,782	98,608
Gross Unrealized Gains	1,071	908
Unrealized loss	(23)	(150)
Fair Value	$ 94,830	$ 99,366

XML

Borrowed Funds (Details Narrative) (USD $) In Thousands, unless otherwise specified	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2007	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Borrowed Funds Details Narrative
Repurchase agreements		$ 64,300		$ 64,300		$ 77,800
Remaining maximum borrowing capacity with the FHLB		152,900		152,900
Private placement of Floating Rate, Trust Preferred Securities	4,000			266	6,500
Trust Preferred Securities and the Debentures				Debentures mature in 30 years and are redeemable by the Company after five years
Debt instrument interest rate description				Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 1.62% over the three month LIBOR Rate
Borrowed funds		4,124	4,124	4,124	4,124	4,124
Interest expense on borrowed funds		$ 22	$ 20	$ 44	$ 40

XML

Borrowed Funds

6 Months Ended

Jun. 30, 2012

Borrowed Funds

Borrowed Funds

Note 3. Borrowed Funds

The Company is a party to repurchase agreements with certain customers. As of June 30, 2012 and December 31, 2011, the Company had repurchase agreements of $64.3 million and $77.8 million.

The bank is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh, Pennsylvania. Borrowings from the FHLB are secured by stock in the FHLB of Pittsburgh, qualifying first mortgage loans, mortgage-backed securities and certain investment securities. The remaining maximum borrowing capacity with the FHLB at June 30, 2012 was approximately $152.9 million.

Borrowings from the FHLB were as follows:	June 30 2012		Dec 31 2011
(dollars in thousands)
Fixed interest rate note, originating April 1999, due April 2014, interest of 5.41% is payable monthly.	$	1,000	$	1,000
Fixed interest rate note, originating January 2005, due January 2020, interest of 5.14% is payable in monthly installments of $11.		807		851
Fixed interest rate note, originating April 2002, due May 2017, interest of 5.90% is payable monthly.		623		631
Fixed interest rate note, originating July 2006, due July 2016, interest of 4.50% is payable in monthly installments of $8.		1,280		1,301
Fixed interest rate note, originating October 2006, due October 2021, interest of 5.20% is payable in monthly installments of $6.		1,057		1,068
Fixed interest rate note, originating February 2007, due February 2022, interest of 5.22% is payable in monthly installments of $5.		888		896
Fixed interest rate note, originating April 2007, due April 2022, interest of 5.18% is payable in monthly installments of $6.		1,005		1,015
Floating interest rate note, originating March 2003, due December 2011, interest of 0.00% payable monthly.		—		—
Fixed interest rate note, originating December 2007, due December 2017, interest of 5.25% is payable in monthly installments of $7.		992		1,005
Fixed interest rate note originating March 2008, due March 2013, interest of 2.37% payable quarterly.		2,000		2,000
	$	9,652	$	9,767

In March 2007 the Company completed the private placement of $4 million Floating Rate, Trust Preferred Securities through its MVB Financial Statutory Trust I subsidiary (the “Trust”). The Company established the trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The proceeds from the sale of the Trust Preferred Securities will be loaned to the Company under subordinated Debentures (the “Debentures”) issued to the Trust pursuant to an Indenture. The Debentures are the only asset of the Trust. The Trust Preferred Securities have been issued to a pooling vehicle that will use the distributions on the Trust Preferred Securities to securitize note obligations. The securities issued by the Trust are includable for regulatory purposes as a component of the Company’s Tier I capital.

The Trust Preferred Securities and the Debentures mature in 30 years and are redeemable by the Company after five years. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 1.62% over the three month LIBOR Rate. The Company reflects borrowed funds in the amount of $4.1 million as of June 30, 2012 and 2011 and interest expense of $44 and $40 for the periods ended June 30, 2012 and 2011.

A summary of maturities of these borrowings over the next five years is as follows:

(dollars in thousands)

Year	Amount
2012	$	127
2013		2,234
2014		1,257
2015		271
2016		1,353
Thereafter		8,534
	$	13,776

XML

Fair Value of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Securities available-for-sale	$ 94,830	$ 99,366
Other Real Estate Owned	142	176
Impaired Loans	3,574	2,822
Level I
Securities available-for-sale
Other Real Estate Owned
Impaired Loans
Level II
Securities available-for-sale	94,830	99,366
Other Real Estate Owned
Impaired Loans
Level III
Securities available-for-sale
Other Real Estate Owned	142	176
Impaired Loans	$ 3,574	$ 2,822

XML

Net Income Per Common Share (Details Narrative) (USD $)	3 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Net Income Per Common Share Details Narrative
Stock options outstanding (in shares)	172,880	148,423
Average exercise price (in dollars per share)	$ 15.63	$ 15.13
Dilutive effect of stock options (in shares)	50,057	36,141

XML

Fair Value of Financial Instruments (Details 1) (Appraisal of collateral, USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Impaired loans | Level 3 inputs, Appraisal adjustments | Range (Weighted Average)
Fair value of financial assets	$ 3,574
Valuation Techniques	Appraisal of collateral	[1]
Unobservable input used	Appraisal adjustments	[2]
Weighted Average interest rate	0% to -50.0% (-25.2%)
Impaired loans | Level 3 inputs, Liquidation expenses | Range (Weighted Average)
Unobservable input used	Liquidation expenses
Weighted Average interest rate	-1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets
Fair value of financial assets	$ 146
Valuation Techniques	Appraisal of collateral	[1],[3]

[1] Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

[2] Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

[3] Includes qualitative adjustments by management and estimated liquidation expenses.

XML

Fair Value of Financial Instruments (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financial assets:
Interest bearing balances	$ 8,797	$ 278
Securities available-for-sale	94,830	99,366
Financial liabilities:
Repurchase agreements	64,300	77,800
Level I
Financial assets:
Securities available-for-sale
Level II
Financial assets:
Securities available-for-sale	94,830	99,366
Level III
Financial assets:
Securities available-for-sale
Carrying Amount
Financial assets:
Cash and due from banks	12,017	9,763
Interest bearing balances	18,224	10,196
Securities available-for-sale	94,830	99,366
Securities held-to-maturity	16,506	13,568
Loans	424,089	373,822
Loans held for sale	2,647	7,147
Bank owned life insurance	8,231	8,076
Accrued interest receivable	1,969	1,582
Financial assets	578,513	523,520
Financial liabilities:
Deposits	457,740	390,545
Repurchase agreements	64,320	77,835
FHLB and other Borrowings	9,652	9,767
Accrued interest payable	383	341
Long-term debt	4,124	4,124
Financial liabilities	536,219	482,612
Fair Value
Financial assets:
Cash and due from banks	12,017	9,763
Interest bearing balances	18,224	10,216
Securities available-for-sale	94,830	99,366
Securities held-to-maturity	17,248	14,144
Loans	438,508	388,027
Loans held for sale	2,647	7,147
Bank owned life insurance	8,231	8,076
Accrued interest receivable	1,969	1,582
Financial assets	593,674	538,321
Financial liabilities:
Deposits	462,317	400,894
Repurchase agreements	64,320	77,861
FHLB and other Borrowings	10,781	11,027
Accrued interest payable	383	341
Long-term debt	4,124	4,124
Financial liabilities	541,925	494,247
Fair Value | Level I
Financial assets:
Cash and due from banks	12,017
Interest bearing balances	18,224
Securities available-for-sale
Securities held-to-maturity
Loans
Loans held for sale
Bank owned life insurance	8,231
Accrued interest receivable	1,969
Financial assets	40,441
Financial liabilities:
Deposits	462,317
Repurchase agreements	64,320
FHLB and other Borrowings	10,781
Accrued interest payable	383
Long-term debt	4,124
Financial liabilities	541,925
Fair Value | Level II
Financial assets:
Cash and due from banks
Interest bearing balances
Securities available-for-sale	94,830
Securities held-to-maturity	17,248
Loans
Loans held for sale
Accrued interest receivable
Financial assets	112,078
Financial liabilities:
Deposits
Repurchase agreements
FHLB and other Borrowings
Accrued interest payable
Long-term debt
Financial liabilities
Fair Value | Level III
Financial assets:
Cash and due from banks
Interest bearing balances
Securities available-for-sale
Securities held-to-maturity
Loans	438,508
Loans held for sale	2,647
Accrued interest receivable
Financial assets	441,155
Financial liabilities:
Deposits
Repurchase agreements
FHLB and other Borrowings
Accrued interest payable
Long-term debt
Financial liabilities

XML

Loans

6 Months Ended

Jun. 30, 2012

Loans

Loans

Note 2. - Loans

The following table summarizes the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2012. Activity in the allowance is presented for the period ended June 30, 2012 (in thousands):

					Home						Credit
	Commercial		Residential		Equity			Installment			Card		Total
ALL balance 12/31/11	$2,164		$366		$249			$255			$11		$3,045
Charge-offs	(916)		-		(9)			(6)			-		(931)
Recoveries	2		-		2			12			-		16
Provision		1,303		53		(1	)		(14	)		9		1,350
ALL balance 6/30/12	$	2,553	$	419	$	241		$	247		$	20	$	3,480
Individually evaluated for impairment	$	683	$	16	$	—		$	24		$	—	$	723
Collectively evaluated for impairment	$	1,870	$	403	$	241		$	223		$	20	$	2,757

							Home						Credit
	Commercial			Residential			Equity			Installment			Card			Total
ALL balance 12/31/10	$	1,517		$	460		$	207		$	274		$	20		$	2,478
Charge-offs		(57	)		(289	)		(114	)		(29	)		(3	)		(492	)
Recoveries		4			—			10			16			—			30
Provision		432			190			41			(36	)		3			630
ALL balance 6/30/11	$	1,896		$	361		$	144		$	225		$	20		$	2,646
Individually evaluated  for impairment	$	1,313		$	33		$	35		$	13		$	3		$	1,397
Collectively evaluated for impairment	$	583		$	328		$	109		$	212		$	17		$	1,249

The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date.

The following table summarizes the primary segments of the loan portfolio as of June 30, 2012 (in thousands):

	Commercial		Residential		Home Equity		Installment		Credit Cards		Total
June 30, 2012
Total Loans	$	270,839	$	122,897	$	16,815	$	12,947	$	591	$	424,089
Individually evaluated for impairment	$	3,466	$	76	$	—	$	32	$	—	$	3,574
Collectively evaluated for impairment	$	267,373	$	122,821	$	16,815	$	12,915	$	591	$	420,515

The following table summarizes the primary segments of the loan portfolio as of December 31, 2011 (in thousands):

	Commercial		Residential		Home Equity		Installment		Credit Cards		Total
December 31, 2011
Total Loans	$	231,357	$	112,753	$	15,930	$	13,217	$	565	$	373,822
Individually evaluated for impairment	$	393	$	197	$	262	$	—	$	4	$	856
Collectively evaluated for impairment	$	194,307	$	71,489	$	14,072	$	12,830	$	490	$	293,188

Management evaluates individual loans in all of the commercial segments for possible impairment. Loans are considered to be impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Corporation also separately evaluates individual consumer and residential mortgage loans for impairment.

Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan's effective interest rate; (b) the loan's observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis.

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2012 (in thousands):

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
June 30, 2012	Investment		Allowance		Investment		Investment		Balance
Commercial	$	3,466	$	683	$	—	$	3,466	$	3,466
Residential		76		16		—		76		76
Home Equity		—		—		—		—		—
Installment		32		24		—		32		32
Credit Card		—		—		—		—		—
Total impaired loans	$	3,574	$	723	$	—	$	3,574	$	3,574

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2011 (in thousands):

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
Dec 31, 2011	Investment		Allowance		Investment		Investment		Balance
Commercial	$	2,597	$	758	$	—	$	2,597	$	2,597
Residential		76		10		—		76		76
Home Equity		9		9		—		9		9
Installment		140		100		—		140		140
Credit Card		—		—		—		—		—
Total impaired loans	$	2,822	$	877	$	—	$	2,822	$	2,822

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands):

	Six Months				Three Months
	June 30				June 30
	2012		2011		2012		2011
Average investment in impaired loans	$	3,799	$	361	$	3,573	$	875
Interest income recognized on an accrual basis on impaired loans	$	81	$	15	$	71	$	18

Management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as "Pass" rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. The portion of any loan that represents a specific allocation of the allowance for loan losses is placed in the Doubtful category. Any portion of a loan that has been charged off is placed in the Loss category.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank's Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Credit Department performs an annual review of all commercial relationships $500,000 or greater. Confirmation of the appropriate risk grade is included in the review on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews larger commercial relationships or criticized relationships. The Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2012 and December 31, 2011 (in thousands):

			Special
June 30, 2012	Pass		Mention		Substandard		Doubtful		Total
Commercial	$	257,160	$	8,624	$	1,589	$	3,466	$	270,839
Residential		120,391		2,018		488		—		122,897
Home Equity		16,579		236		—		—		16,815
Installment		12,586		328		33		—		12,947
Credit Card		583		—		8		—		591
Total	$	407,299	$	11,206	$	2,118	$	3,466	$	424,089

			Special
Dec. 31, 2011	Pass		Mention		Substandard		Doubtful		Total
Commercial	$	218,353	$	7,752	$	2,655	$	2,597	$	231,357
Residential		111,105		1,157		491		—		112,753
Home Equity		15,750		96		75		9		15,930
Installment		12,806		242		29		140		13,217
Credit Card		565		—		—		—		565
Total	$	358,579	$	9,247	$	3,250	$	2,746	$	373,822

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2012 and December 31, 2011 (in thousands):

		Current	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Non- Accrual		Total Loans
June 30, 2012
Commercial	$	264,545	$	1,655	$	1,041	$	127	$	2,823	$	3,471	$	270,839
Residential		122,367		382		72		—		454		76		122,897
Home Equity		16,805		10		—		—		10		—		16,815
Installment		12,841		54		13		10		77		29		12,947
Credit Card		591		—		—		—		—		—		591
Total	$	417,149	$	2,101	$	1,126	$	137	$	3,364	$	3,576	$	424,089

		Current	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Non- Accrual		Total Loans
Dec 31, 2011
Commercial	$	225,618	$	448		2,836	$	2	$	3,286	$	2,453	$	231,357
Residential		111,022		1,593		—		62		1,655		76		112,753
Home Equity		15,846		—		84		—		84		—		15,930
Installment		12,888		138		26		2		166		163		13,217
Credit Card		565		—		—		—		—		—		565
Total	$	365,939	$	2,179	$	2,946		66	$	5,191	$	2,692	$	373,822

An allowance for loan losses ("ALL") is maintained to absorb losses from the loan portfolio. The ALL is based on management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

The Bank's methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank's ALL.

Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualified factors.

The classes described above, which are based on the Federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. Commercial, Mortgage and Consumer pools currently utilize a rolling 12 quarters.

"Pass" rated credits are segregated from "Criticized" credits for the application of qualitative factors. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors.

Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volume and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint.

Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

Historically, management has utilized an internally developed spreadsheet to track and apply the various components of the allowance.

The following table presents details related to loans identified as Troubled Debt Restructurings (TDRs) during the three months ended June 30, 2012:

	New TDRs (1)
	For the Six Months Ended						For the Period  Ended
	30-Jun-12						31-Dec-11
(Unaudited, dollars in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:		—		—		—		—		—		—
Land and construction		1		908		898		—		—		—
Other		—		1		103		103
Total commercial real estate		1		908		898		1		103		103
Commercial and industrial		—		—		—		—		—		—
Residential real estate		—		—		—		1		415		415
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total		1		908		898		2		518		518

^{(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.}

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Investments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Amortized cost and approximate fair values of investment securities held-to-maturity :
Amortized Cost	$ 16,506	$ 13,568
Municipal securities
Amortized cost and approximate fair values of investment securities held-to-maturity :
Amortized Cost	16,506	13,568
Gross Unrealized Gains	751	587
Gross Unrealized Losses	(9)	(11)
Fair Value	17,248	14,144
Debt Securities
Amortized cost and approximate fair values of investment securities held-to-maturity :
Amortized Cost	16,506	13,568
Gross Unrealized Gains	751	587
Gross Unrealized Losses	(9)	(11)
Fair Value	17,248	14,144
U.S. Agency securities
Amortized cost and approximate fair values of investment securities held-to-maturity :
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Cash and due from banks with banks	$ 12,017	$ 9,763
Interest bearing balances	8,797	278
Certificates of deposit in other banks	9,427	9,918
Securities held-to-maturity, at amortized cost	16,506	13,568
Securities available-for-sale, at fair value	94,830	99,366
Loans:	424,089	373,822
Less: Allowance for loan losses	(3,480)	(3,045)
Net Loans	420,609	370,777
Loans held for sale	2,647	7,147
Bank premises, furniture and equipment	7,828	7,782
Bank owned life insurance	8,231	8,076
Accrued interest receivable and other assets	7,303	6,806
TOTAL ASSETS	588,195	533,481
Non-interest bearing	47,322	38,632
Interest bearing	410,418	351,913
Total Deposits	457,740	390,545
Accrued interest, taxes, and other liabilities	2,676	3,478
Repurchase agreements	64,320	77,835
Federal Home Loan Bank and other borrowings	9,652	9,767
Long-term debt	4,124	4,124
Total Liabilities	538,512	485,749
Preferred stock, $1,000 par value, 8,500 shares authorized and issued	8,500	8,500
Common stock, $1 par value, 4,000,000 authorized, 2,246,838 and 2,234,767 issued, respectively	2,247	2,235
Additional paid-in capital	32,936	32,603
Treasury Stock, 51,077 and 51,077 shares	(1,084)	(1,084)
Retained earnings	7,651	6,220
Accumulated other comprehensive income (loss)	(567)	(742)
Total stockholders' equity	49,683	47,732
Total liabilities and stockholders' equity	$ 588,195	$ 533,481

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
OPERATING ACTIVITIES
Net Income	$ 1,678	$ 1,302
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,350	630
Deferred income tax expense	44	106
Depreciation	260	224
Stock based compensation	79	57
Loans originated for sale	(50,067)	(18,489)
Proceeds of loans sold	54,567	18,286
Proceeds from sale of other real estate owned	30	312
Loss on sale of other real estate owned	2
(Gain) on sale of investment securities	(73)	(356)
Amortization, net of accretion	539	367
(Increase) in interest receivable and other assets	(843)	(217)
(Decrease) in accrued interest, taxes, and other liabilities	(802)	(368)
Net cash provided by operating activities	6,764	1,854
INVESTING ACTIVITIES
(Increase) in loans made to customers	(51,182)	(35,898)
Purchases of premises and equipment	(306)	(181)
(Increase)/decrease in interest bearing balances with banks, net	(8,519)	5,778
Maturities of certificates of deposit in other banks	491	17,734
Purchases of investment securities available-for-sale	(27,244)	(106,497)
Proceeds from sales, maturities and calls of securities available-for-sale	31,604	93,053
Proceeds from sales, maturities and calls of securities held to maturity		(1,000)
Purchases of investment securities held-to-maturity	(2,938)
Purchase of bank owned life insurance		(1,200)
Net cash (used in) investing activities	(58,094)	(26,211)
FINANCING ACTIVITIES
Net increase in deposits	67,195	48,493
Net (decrease)/increase in repurchase agreements	(13,515)	2,599
Proceeds from Federal Home Loan Bank borrowings	56,495	47,201
Principal payments on Federal Home Loan Bank borrowings	(56,610)	(65,936)
Net proceeds of dividend reinvestment plan/stock offering	266	6,500
Cash dividend	(153)
Dividends on preferred stock	(94)
Net cash provided by financing activities	53,584	38,857
Increase/(decrease) in cash and cash equivalents	2,254	14,500
Cash and cash equivalents at beginning of period	9,763	3,713
Cash and cash equivalents at end of period	12,017	18,213
Interest on deposits, repurchase agreements and borrowings	2,412	2,531
Income taxes	$ 527	$ 467

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Investments (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Less than 12 Months, Fair Value	$ 10,222	$ 37,008
Less than 12 Months, Unrealized Losses	(32)	(140)
12 Months or Longer, Fair Value		3,124
12 Months or Longer, Unrealized Losses		(21)
Total Temporary impairment	(32)	(161)
U.S. Agency securities
Number of unrealized loss position	1	1
Less than 12 Months, Fair Value	3,038	4,999
Less than 12 Months, Unrealized Losses	(4)	(1)
12 Months or Longer, Fair Value
12 Months or Longer, Unrealized Losses
Mortgage backed securities
Number of unrealized loss position	3	16
Less than 12 Months, Fair Value	5,905	31,073
Less than 12 Months, Unrealized Losses	(19)	(128)
12 Months or Longer, Fair Value		3,124
12 Months or Longer, Unrealized Losses		(21)
Municipal securities
Number of unrealized loss position	4	3
Less than 12 Months, Fair Value	1,279	936
Less than 12 Months, Unrealized Losses	(9)	(11)
12 Months or Longer, Fair Value
12 Months or Longer, Unrealized Losses

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Loans (Details 3) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Credit risks rated loans	$ 424,089	$ 373,822
Internal risk rating system description	Management uses a nine point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as "Pass" rated
Minimum threshold for performing annual review of commercial relationship	500
Commercial
Credit risks rated loans	270,839	231,357
Commercial | Pass
Credit risks rated loans	257,160	218,353
Commercial | Special Mention
Credit risks rated loans	8,624	7,752
Commercial | Substandard
Credit risks rated loans	1,589	2,655
Commercial | Doubtful
Credit risks rated loans	3,466	2,597
Commercial | Consumer Credit Score [Member]
Credit risks rated loans	270,839	231,357
Residential
Credit risks rated loans	122,897	112,753
Residential | Pass
Credit risks rated loans	120,391	111,105
Residential | Special Mention
Credit risks rated loans	2,018	1,157
Residential | Substandard
Credit risks rated loans	488	491
Residential | Doubtful
Credit risks rated loans
Residential | Consumer Credit Score [Member]
Credit risks rated loans	122,897	112,753
Home Equity
Credit risks rated loans	16,815	15,930
Home Equity | Pass
Credit risks rated loans	16,579	15,750
Home Equity | Special Mention
Credit risks rated loans	236	96
Home Equity | Substandard
Credit risks rated loans		75
Home Equity | Doubtful
Credit risks rated loans		9
Home Equity | Consumer Credit Score [Member]
Credit risks rated loans	16,815	15,930
Installment
Credit risks rated loans	12,947	13,217
Installment | Pass
Credit risks rated loans	12,586	12,806
Installment | Special Mention
Credit risks rated loans	328	242
Installment | Substandard
Credit risks rated loans	33	29
Installment | Doubtful
Credit risks rated loans		140
Installment | Consumer Credit Score [Member]
Credit risks rated loans	12,947	13,217
Credit Card
Credit risks rated loans	591	565
Credit Card | Pass
Credit risks rated loans	583	565
Credit Card | Special Mention
Credit risks rated loans
Credit Card | Substandard
Credit risks rated loans	8
Credit Card | Doubtful
Credit risks rated loans
Credit Card | Consumer Credit Score [Member]
Credit risks rated loans	591	565
Total | Pass
Credit risks rated loans	407,299	358,579
Total | Special Mention
Credit risks rated loans	11,206	9,247
Total | Substandard
Credit risks rated loans	2,118	3,250
Total | Doubtful
Credit risks rated loans	$ 3,466	$ 2,746

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Loans (Details 5) (USD $)	Jun. 30, 2012 N	Dec. 31, 2011 N
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts	1	2
Pre-Modification Outstanding Recorded Investment	$ 908	$ 518
Post-Modification Outstanding Recorded Investment	898	518
Commercial real estate, Land and construction
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts	1
Pre-Modification Outstanding Recorded Investment	908
Post-Modification Outstanding Recorded Investment	898
Total commercial real estate
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts	1	1
Pre-Modification Outstanding Recorded Investment	908	103
Post-Modification Outstanding Recorded Investment	898	103
Commercial real estate, Other
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts		1
Pre-Modification Outstanding Recorded Investment		103
Post-Modification Outstanding Recorded Investment		103
Residential
Details related to loans identified as Troubled Debt Restructurings (TDRs):
Number of Contracts		1
Pre-Modification Outstanding Recorded Investment		415
Post-Modification Outstanding Recorded Investment		$ 415

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Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis Of Presentation

Basis of Presentation

Note 1 – Basis of Presentation

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with instructions to Form 10-Q and Section 310(b) of Regulation SB. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for annual year-end financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation, have been included and are of a normal, recurring nature. The balance sheet as of December 31, 2011 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles. Operating results for the six and three months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

The accounting and reporting policies of MVB conform to accounting principles generally accepted in the United States and practices in the banking industry. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change. Actual results could differ from those estimates. All significant inter-company accounts and transactions have been eliminated in consolidation.

The consolidated balance sheet as of December 31, 2011 has been extracted from audited financial statements included in MVB’s 2011 filing on Form 10-K. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in MVB’s December 31, 2011, Form 10-K filed with the Securities and Exchange Commission.

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 1,000.00	$ 1,000.00
Preferred stock, shares authorized	8,500	8,500
Preferred stock, shares issued	8,500	8,500
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	2,246,838	2,234,767
Treasury stock, shares	51,077	51,077

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Investments (Tables)

6 Months Ended

Jun. 30, 2012

Investments Tables

Schedule of amortized cost and approximate fair values of investment securities held-to-maturity

Amortized cost and approximate fair values of investment securities held-to-maturity at June 30, 2012, including gross unrealized gains and losses, are summarized as follows:

(Dollars in thousands)
								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Municipal securities	$	16,506	$	751	$	(9	)	$	17,248
	$	16,506	$	751	$	(9	)	$	17,248

Amortized cost and approximate fair values of investment securities held-to-maturity at December 31, 2011, including gross unrealized gains and losses, are summarized as follows:

(Dollars in thousands)
								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Municipal securities	$	13,568	$	587	$	(11	)	$	14,144
U.S. Agency securities		—		—		—			—
	$	13,568	$	587	$	(11	)	$	14,144

Schedule of amortized cost and approximate fair values of investment securities available-for-sale

Amortized cost and approximate fair values of investment securities available-for-sale at June 30, 2012 are summarized as follows:

								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
U. S. Agency securities	$	41,208	$	710	$	(4	)	$	41,914
Mortgage-backed securities		52,450		361		(19	)		52,792
Other securities		124		—		—			124
	$	93,782	$	1,071	$	(23	)	$	94,830

Amortized cost and approximate fair values of investment securities available-for-sale at December 31, 2011 are summarized as follows:

								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
U. S. Agency securities	$	51,165	$	710	$	(1	)	$	51,874
Mortgage-backed securities		47,319		198		(149	)		47,368
Other securities		124		—		—			124
	$	98,608	$	908	$	(150	)		99,366

Schedule of amortized cost and approximate fair values of securities by maturity

The following tables summarize amortized cost and approximate fair values of securities by maturity:

	June 30, 2012
	Held to Maturity				Available for sale
			Approximate				Approximate
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	115	$	115	$	—	$	—
After one year, but within five		—		—		28,905		29,558
After five years, but within ten		5,957		6,326		30,858		31,018
After ten Years		10,434		10,807		34,019		34,254
Total	$	16,506	$	17,248	$	93,782	$	94,830

Schedule of investments in an unrealized loss position

The following table discloses investments in an unrealized loss position:

At June 30, 2012 and December 31, 2011, total temporary impairment totaled $32 and $161, respectively.

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agencies(1)	$	3,038	$	(4	)	$	—	$	—
Mortgage-backed securities(3) (11)		5,905		(19	)		—		—
Municipal securities(4)		1,279		(9	)		—		—
	$	10,222	$	(32	)	$	—	$	—

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agencies(1)	$	4,999	$	(1	)	$	—	$	—
Mortgage-backed securities (16)		31,073		(128	)		3,124		(21	)
Municipal securities(3)		936		(11	)		—		—
	$	37,008	$	(140	)	$	3,124	$	(21	)

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document And Entity Information
Entity Registrant Name	MVB FINANCIAL CORP
Entity Central Index Key	0001277902
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,246,838
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Of Financial Instruments Tables

Schedule of assets and liabilities reported on the consolidated balance sheets at their fair value

The following table presents the assets and liabilities reported on the consolidated balance sheets at their fair value as of June 30, 2012 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All measurements are made on a recurring basis, with the exception of other real estate and impaired loans, which are measured on a non-recurring basis.

(In Thousands)	June 30, 2012
	Level I		Level II		Level III		Total
Assets:
Investment securities, available for sale		—		94,830		—		94,830
Other Real Estate Owned		—		—		142		142
Impaired Loans		—		—		3,574		3,574

(In Thousands)	December 31, 2011
	Level I		Level II		Level III		Total
Assets:
Investment securities, available for sale		—		99,366		—		99,366
Other Real Estate Owned		—				176		176
Impaired Loans		—		—		2,822		2,822

Schedule of methods and significant assumptions used by the entitie's in estimating its fair value disclosures for financial instruments

The following table presents additional quantitative information about assets measure at fair value on a non-recurring basis and for which MVB has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2012:
Impaired loans	3,574	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	0% to -50.0% (-25.2%) -1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	142	Appraisal of collateral (1),(3)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

Schedule of carrying values and estimated fair values of the entitie's financial instruments

The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows:

					Fair Value Measurements at June 30, 2012
(Dollars in thousands)	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Cash and due from banks	$	12,017	$	12,017	$	12,017	$	—	$	—
Interest bearing balances and CDs		18,224		18,224		18,224		—		—
Securities available-for-sale		94,830		94,830		—		94,830		—
Securities held-to-maturity		16,506		17,248		—		17,248		—
Loans		424,089		438,508						438,508
Loans held for sale		2,647		2,647		—		—		2,647
Bank owned life insurance		8,231		8,231		8,231		—		—
Accrued interest receivable		1,969		1,969		1,969		—		—
	$	578,513	$	593,674		40,441		112,078		441,155
Financial liabilities:
Deposits	$	457,740	$	462,317		462,317		—		—
Repurchase agreements		64,320		64,320		64,320		—		—
FHLB and other Borrowings		9,652		10,781		10,781		—		—
Accrued interest payable		383		383		383		—		—
Long-term debt		4,124		4,124		4,124		—		—
	$	536,219	$	541,925	$	541,925		—		—

	December 31, 2011
(Dollars in thousands)	Carrying Value		Fair Value
Financial assets:
Cash and due from banks	$	9,763	$	9,763
Interest bearing balances		10,196		10,216
Securities available-for-sale		99,366		99,366
Securities held-to-maturity		13,568		14,144
Loans		373,822		388,027
Loans held for sale		7,147		7,147
Bank owned life insurance		8,076		8,076
Accrued interest receivable		1,582		1,582
	$	523,520	$	538,321
Financial liabilities:
Deposits	$	390,545	$	400,894
Repurchase agreements		77,835		77,861
FHLB and other Borrowings		9,767		11,027
Accrued interest payable		341		341
Long-term debt		4,124		4,124
	$	482,612	$	494,247

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Consolidated Statements of Income (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
INTEREST INCOME
Interest and fees on loans	$ 4,635	$ 3,987	$ 9,223	$ 7,737
Interest on deposits with other banks	51	13	109	49
Interest on investment securities - taxable	407	364	833	708
Interest on tax exempt loans and securities	318	206	625	414
Total interest income	5,411	4,570	10,790	8,908
INTEREST EXPENSE
Deposits	954	985	1,919	1,940
Repurchase agreements	129	124	243	233
FHLB and other borrowings	122	114	238	235
Long-term debt	22	20	44	40
Total interest expense	1,227	1,243	2,444	2,448
Net interest income	4,184	3,327	8,346	6,460
Provision for loan losses	675	330	1,350	630
Net interest income after provision for loan losses	3,509	2,997	6,996	5,830
OTHER INCOME
Service charges on deposit accounts	178	163	339	293
Income on bank owned life insurance	78	81	156	128
Visa debit card income	114	107	225	203
Income on loans held for sale	638	180	1,068	273
Other operating income	258	126	446	231
Gain on sale of securities	7	207	73	356
Total other income	1,273	864	2,307	1,484
OTHER EXPENSES
Salaries and employee benefits	2,163	1,669	4,119	3,091
Occupancy expense	209	173	413	315
Equipment depreciation and maintenance	177	161	333	287
Data processing	129	69	217	105
Visa debit card expense	94	84	185	161
Advertising	182	87	349	162
Legal and accounting fees	68	77	184	141
Printing, stationery and supplies	57	48	91	85
Consulting fees	111	107	224	199
FDIC insurance	54	124	81	243
Other taxes	46	37	90	86
Other operating expenses	386	352	728	626
Total other expense	3,676	2,988	7,014	5,501
Income before income taxes	1,106	873	2,289	1,813
Income tax expense	289	237	611	511
Net income	817	636	1,678	1,302
Preferred stock dividends	21		94
Net Income available to common shareholders	$ 796	$ 636	$ 1,584	$ 1,302
Basic earnings per common share	$ 0.34	$ 0.29	$ 0.73	$ 0.62
Diluted earnings per common share	$ 0.33	$ 0.29	$ 0.71	$ 0.61
Basic weighted average shares outstanding	2,186,210	2,187,549	2,184,950	2,110,474
Diluted weighted average shares outstanding	2,236,267	2,223,690	2,235,007	2,146,615

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value Of Financial Instruments

Fair Value of Financial Instruments

Note 6 – Fair Value of Financial Instruments

Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date.

Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed.

Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the assets and liabilities reported on the consolidated balance sheets at their fair value as of June 30, 2012 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. All measurements are made on a recurring basis, with the exception of other real estate and impaired loans, which are measured on a non-recurring basis.

(In Thousands)	June 30, 2012
	Level I		Level II		Level III		Total
Assets:
Investment securities, available for sale		—		94,830		—		94,830
Other Real Estate Owned		—		—		142		142
Impaired Loans		—		—		3,574		3,574

(In Thousands)	December 31, 2011
	Level I		Level II		Level III		Total
Assets:
Investment securities, available for sale		—		99,366		—		99,366
Other Real Estate Owned		—				176		176
Impaired Loans		—		—		2,822		2,822

The following table presents additional quantitative information about assets measure at fair value on a non-recurring basis and for which MVB has utilized Level 3 inputs to determine fair value:

	Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value Estimate	Valuation Techniques	Unobservable Input	Range (Weighted Average)
June 30, 2012:
Impaired loans	3,574	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	0% to -50.0% (-25.2%) -1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	142	Appraisal of collateral (1),(3)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

The following summarizes the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial instruments.

Short-term financial instruments: The carrying values of short-term financial instruments including cash and due from banks, interest bearing balances – FHLB, and certificates of deposit in other banks approximate the fair value of these instruments.

Securities: Estimated fair values of securities are based on quoted market prices, where available. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities.

Loans: The estimated fair values for loans are computed based on scheduled future cash flows of principal and interest, discounted at interest rates currently offered for loans with similar terms of borrowers of similar credit quality. No prepayments of principal are assumed.

Loans held for sale: Estimated fair values of loans held for sale approximate their fair values.

Bank Owned Life Insurance: Estimated fair values of bank owned life insurance approximate the cash surrender value of the policies.

Accrued interest receivable and payable: The carrying values of accrued interest receivable and payable approximate their estimated fair values.

Repurchase Agreements: The fair values of repurchase agreements approximate their carrying values.

Deposits: The estimated fair values of demand deposits (i.e., non interest bearing checking, NOW and money market), savings accounts and other variable rate deposits approximate their carrying values. Fair values of fixed maturity deposits are estimated using a discounted cash flow methodology at rates currently offered for deposits with similar remaining maturities. Any intangible value of long-term relationships with depositors is not considered in estimating the fair values disclosed.

FHLB and other borrowings: The fair values of FHLB and other borrowings are based upon rates currently available for borrowings with similar terms and maturities.

Long-term debt: The fair value of long-term debt approximates its fair value.

Off-balance sheet instruments: The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of agreements and the present credit standing of the counterparties. The amounts of fees currently charged on commitments and standby letters of credit are deemed significant, and therefore, the estimated fair values and carrying values are not shown.

The carrying values and estimated fair values of the Company’s financial instruments are summarized as follows:

					Fair Value Measurements at June 30, 2012
(Dollars in thousands)	Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Cash and due from banks	$	12,017	$	12,017	$	12,017	$	—	$	—
Interest bearing balances and CDs		18,224		18,224		18,224		—		—
Securities available-for-sale		94,830		94,830		—		94,830		—
Securities held-to-maturity		16,506		17,248		—		17,248		—
Loans		424,089		438,508						438,508
Loans held for sale		2,647		2,647		—		—		2,647
Bank owned life insurance		8,231		8,231		8,231		—		—
Accrued interest receivable		1,969		1,969		1,969		—		—
	$	578,513	$	593,674		40,441		112,078		441,155
Financial liabilities:
Deposits	$	457,740	$	462,317		462,317		—		—
Repurchase agreements		64,320		64,320		64,320		—		—
FHLB and other Borrowings		9,652		10,781		10,781		—		—
Accrued interest payable		383		383		383		—		—
Long-term debt		4,124		4,124		4,124		—		—
	$	536,219	$	541,925	$	541,925		—		—

	December 31, 2011
(Dollars in thousands)	Carrying Value		Fair Value
Financial assets:
Cash and due from banks	$	9,763	$	9,763
Interest bearing balances		10,196		10,216
Securities available-for-sale		99,366		99,366
Securities held-to-maturity		13,568		14,144
Loans		373,822		388,027
Loans held for sale		7,147		7,147
Bank owned life insurance		8,076		8,076
Accrued interest receivable		1,582		1,582
	$	523,520	$	538,321
Financial liabilities:
Deposits	$	390,545	$	400,894
Repurchase agreements		77,835		77,861
FHLB and other Borrowings		9,767		11,027
Accrued interest payable		341		341
Long-term debt		4,124		4,124
	$	482,612	$	494,247

Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Note 5 – Recent Accounting Pronouncements

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. The amendments in this Update are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted.The Company has provided the necessary disclosure in Note 6.

In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The amendments in this Update improve the comparability, clarity, consistency, and transparency of financial reporting and increase the prominence of items reported in other comprehensive income. To increase the prominence of items reported in other comprehensive income and to facilitate convergence of U.S. GAAP and IFRS, the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity was eliminated. The amendments require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. All entities that report items of comprehensive income, in any period presented, will be affected by the changes in this Update. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The amendments in this Update should be applied retrospectively, and early adoption is permitted.The Company has provided the necessary disclosure in the Statements of Comprehensive Income.

In September 2011, the FASB issued ASU 2011-09, Compensation-Retirement Benefits-Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan. The amendments in this Update will require additional disclosures about an employer’s participation in a multiemployer pension plan to enable users of financial statements to assess the potential cash flow implications relating to an employer’s participation in multiemployer pension plans. The disclosures also will indicate the financial health of all of the significant plans in which the employer participates and assist a financial statement user to access additional information that is available outside the financial statements. For public entities, the amendments in this Update are effective for annual periods for fiscal years ending after December 15, 2011, with early adoption permitted. The amendments should be applied retrospectively for all prior periods presented.This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate-a Scope Clarification. The amendments in this Update affect entities that cease to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt. Under the amendments in this Update, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary's nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20 to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness. That is, even if the reporting entity ceases to have a controlling financial interest under Subtopic 810-10, the reporting entity would continue to include the real estate, debt, and the results of the subsidiary's operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt. The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date. Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities. For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The amendments in this Update affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement. The requirements amend the disclosure requirements on offsetting in Section 210-20-50. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05. Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05. All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate

but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has provided the necessary disclosure in Statement of Comprehensive Income.

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Loans (Details 4) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Aging categories of performing loans and nonaccrual loans
Current	$ 417,149	$ 365,939
30-59 Days Past Due	2,101	2,179
60-89 Days Past Due	1,126	2,946
90 Days Past Due	137	66
Total Past Due	3,364	5,191
Non-Accrual	3,576	2,692
Total Loans	424,089	373,822
Commercial
Aging categories of performing loans and nonaccrual loans
Current	264,545	225,618
30-59 Days Past Due	1,655	448
60-89 Days Past Due	1,041	2,836
90 Days Past Due	127	2
Total Past Due	2,823	3,286
Non-Accrual	3,471	2,453
Total Loans	270,839	231,357
Residential
Aging categories of performing loans and nonaccrual loans
Current	122,367	111,022
30-59 Days Past Due	382	1,593
60-89 Days Past Due	72
90 Days Past Due		62
Total Past Due	454	1,655
Non-Accrual	76	76
Total Loans	122,897	112,753
Home Equity
Aging categories of performing loans and nonaccrual loans
Current	16,805	15,846
30-59 Days Past Due	10
60-89 Days Past Due		84
90 Days Past Due
Total Past Due	10	84
Non-Accrual
Total Loans	16,815	15,930
Installment
Aging categories of performing loans and nonaccrual loans
Current	12,841	12,888
30-59 Days Past Due	54	138
60-89 Days Past Due	13	26
90 Days Past Due	10	2
Total Past Due	77	166
Non-Accrual	29	163
Total Loans	12,947	13,217
Credit Card
Aging categories of performing loans and nonaccrual loans
Current	591	565
30-59 Days Past Due
60-89 Days Past Due
90 Days Past Due
Total Past Due
Non-Accrual
Total Loans	$ 591	$ 565

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Loans (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
ALL balance at the begining of period	$ 3,045	$ 2,478
Charge-offs	(931)	(492)
Recoveries	16	30
Provision	1,350	630
ALL balance at the end of period	3,480	2,646
Individually evaluated for impairment	723	1,397
Collectively evaluated for impairment	2,757	1,249
Commercial
ALL balance at the begining of period	2,164	1,517
Charge-offs	(916)	(57)
Recoveries	2	4
Provision	1,303	432
ALL balance at the end of period	2,553	1,896
Individually evaluated for impairment	683	1,313
Collectively evaluated for impairment	1,870	583
Residential
ALL balance at the begining of period	366	460
Charge-offs		(2,289)
Recoveries
Provision	53	190
ALL balance at the end of period	419	361
Individually evaluated for impairment	16	33
Collectively evaluated for impairment	403	328
Home Equity
ALL balance at the begining of period	249	207
Charge-offs	(9)	(114)
Recoveries	2	10
Provision	(1)	41
ALL balance at the end of period	241	144
Individually evaluated for impairment		35
Collectively evaluated for impairment	241	109
Installment
ALL balance at the begining of period	255	274
Charge-offs	(6)	(29)
Recoveries	12	16
Provision	(14)	(36)
ALL balance at the end of period	247	225
Individually evaluated for impairment	24	13
Collectively evaluated for impairment	223	212
Credit Card
ALL balance at the begining of period	11	20
Charge-offs		(3)
Recoveries
Provision	9	3
ALL balance at the end of period	20	20
Individually evaluated for impairment		3
Collectively evaluated for impairment	$ 20	$ 17

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Borrowed Funds (Tables)

6 Months Ended

Jun. 30, 2012

Borrowed Funds Tables

Schedule of borrowings from the FHLB

Borrowings from the FHLB were as follows:	June 30 2012		Dec 31 2011
(dollars in thousands)
Fixed interest rate note, originating April 1999, due April 2014, interest of 5.41% is payable monthly.	$	1,000	$	1,000
Fixed interest rate note, originating January 2005, due January 2020, interest of 5.14% is payable in monthly installments of $11.		807		851
Fixed interest rate note, originating April 2002, due May 2017, interest of 5.90% is payable monthly.		623		631
Fixed interest rate note, originating July 2006, due July 2016, interest of 4.50% is payable in monthly installments of $8.		1,280		1,301
Fixed interest rate note, originating October 2006, due October 2021, interest of 5.20% is payable in monthly installments of $6.		1,057		1,068
Fixed interest rate note, originating February 2007, due February 2022, interest of 5.22% is payable in monthly installments of $5.		888		896
Fixed interest rate note, originating April 2007, due April 2022, interest of 5.18% is payable in monthly installments of $6.		1,005		1,015
Floating interest rate note, originating March 2003, due December 2011, interest of 0.00% payable monthly.		—		—
Fixed interest rate note, originating December 2007, due December 2017, interest of 5.25% is payable in monthly installments of $7.		992		1,005
Fixed interest rate note originating March 2008, due March 2013, interest of 2.37% payable quarterly.		2,000		2,000
	$	9,652	$	9,767

Schedule of maturities of borrowings over the next five years

A summary of maturities of these borrowings over the next five years is as follows:

(dollars in thousands)

Year	Amount
2012	$	127
2013		2,234
2014		1,257
2015		271
2016		1,353
Thereafter		8,534
	$	13,776

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Investments

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

Investments

Note 7 – Investments

Amortized cost and approximate fair values of investment securities held-to-maturity at June 30, 2012, including gross unrealized gains and losses, are summarized as follows:

(Dollars in thousands)
								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Municipal securities	$	16,506	$	751	$	(9	)	$	17,248
	$	16,506	$	751	$	(9	)	$	17,248

Amortized cost and approximate fair values of investment securities held-to-maturity at December 31, 2011, including gross unrealized gains and losses, are summarized as follows:

(Dollars in thousands)
								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Municipal securities	$	13,568	$	587	$	(11	)	$	14,144
U.S. Agency securities		—		—		—			—
	$	13,568	$	587	$	(11	)	$	14,144

Amortized cost and approximate fair values of investment securities available-for-sale at June 30, 2012 are summarized as follows:

								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
U. S. Agency securities	$	41,208	$	710	$	(4	)	$	41,914
Mortgage-backed securities		52,450		361		(19	)		52,792
Other securities		124		—		—			124
	$	93,782	$	1,071	$	(23	)	$	94,830

Amortized cost and approximate fair values of investment securities available-for-sale at December 31, 2011 are summarized as follows:

								Approximate
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
U. S. Agency securities	$	51,165	$	710	$	(1	)	$	51,874
Mortgage-backed securities		47,319		198		(149	)		47,368
Other securities		124		—		—			124
	$	98,608	$	908	$	(150	)		99,366

The following tables summarize amortized cost and approximate fair values of securities by maturity:

	June 30, 2012
	Held to Maturity				Available for sale
			Approximate				Approximate
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	115	$	115	$	—	$	—
After one year, but within five		—		—		28,905		29,558
After five years, but within ten		5,957		6,326		30,858		31,018
After ten Years		10,434		10,807		34,019		34,254
Total	$	16,506	$	17,248	$	93,782	$	94,830

The Company's investment portfolio includes securities that are in an unrealized loss position as of June 30, 2012, the details of which are included in the following table. Although these securities, if sold at June 30, 2012 would result in a pretax loss of $32, the Company has no intent to sell the applicable securities at such market values, and maintains the Company has the ability to hold these securities until all principal has been recovered. Declines in the market values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company's ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of June 30, 2012, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in market value.

The following table discloses investments in an unrealized loss position:

At June 30, 2012 and December 31, 2011, total temporary impairment totaled $32 and $161, respectively.

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agencies(1)	$	3,038	$	(4	)	$	—	$	—
Mortgage-backed securities(3) (11)		5,905		(19	)		—		—
Municipal securities(4)		1,279		(9	)		—		—
	$	10,222	$	(32	)	$	—	$	—

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agencies(1)	$	4,999	$	(1	)	$	—	$	—
Mortgage-backed securities (16)		31,073		(128	)		3,124		(21	)
Municipal securities(3)		936		(11	)		—		—
	$	37,008	$	(140	)	$	3,124	$	(21	)

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2012

Basis Of Presentation Policies

Basis of Accounting

The accounting and reporting policies of MVB conform to accounting principles generally accepted in the United States and practices in the banking industry. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates, such as the allowance for loan losses, are based upon known facts and circumstances. Estimates are revised by management in the period such facts and circumstances change. Actual results could differ from those estimates. All significant inter-company accounts and transactions have been eliminated in consolidation.

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Loans (Tables)

6 Months Ended

Jun. 30, 2012

Loans Tables

Schedule Activity in the allowance for credit losses on financing receibables

The following table summarizes the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2012. Activity in the allowance is presented for the period ended June 30, 2012 (in thousands):

					Home						Credit
	Commercial		Residential		Equity			Installment			Card		Total
ALL balance 12/31/11	$2,164		$366		$249			$255			$11		$3,045
Charge-offs	(916)		-		(9)			(6)			-		(931)
Recoveries	2		-		2			12			-		16
Provision		1,303		53		(1	)		(14	)		9		1,350
ALL balance 6/30/12	$	2,553	$	419	$	241		$	247		$	20	$	3,480
Individually evaluated for impairment	$	683	$	16	$	—		$	24		$	—	$	723
Collectively evaluated for impairment	$	1,870	$	403	$	241		$	223		$	20	$	2,757

							Home						Credit
	Commercial			Residential			Equity			Installment			Card			Total
ALL balance 12/31/10	$	1,517		$	460		$	207		$	274		$	20		$	2,478
Charge-offs		(57	)		(289	)		(114	)		(29	)		(3	)		(492	)
Recoveries		4			—			10			16			—			30
Provision		432			190			41			(36	)		3			630
ALL balance 6/30/11	$	1,896		$	361		$	144		$	225		$	20		$	2,646
Individually evaluated  for impairment	$	1,313		$	33		$	35		$	13		$	3		$	1,397
Collectively evaluated for impairment	$	583		$	328		$	109		$	212		$	17		$	1,249

The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date.

The following table summarizes the primary segments of the loan portfolio as of June 30, 2012 (in thousands):

	Commercial		Residential		Home Equity		Installment		Credit Cards		Total
June 30, 2012
Total Loans	$	270,839	$	122,897	$	16,815	$	12,947	$	591	$	424,089
Individually evaluated for impairment	$	3,466	$	76	$	—	$	32	$	—	$	3,574
Collectively evaluated for impairment	$	267,373	$	122,821	$	16,815	$	12,915	$	591	$	420,515

Schedule of impaired loans

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of June 30, 2012 (in thousands):

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
June 30, 2012	Investment		Allowance		Investment		Investment		Balance
Commercial	$	3,466	$	683	$	—	$	3,466	$	3,466
Residential		76		16		—		76		76
Home Equity		—		—		—		—		—
Installment		32		24		—		32		32
Credit Card		—		—		—		—		—
Total impaired loans	$	3,574	$	723	$	—	$	3,574	$	3,574

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of December 31, 2011 (in thousands):

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
Dec 31, 2011	Investment		Allowance		Investment		Investment		Balance
Commercial	$	2,597	$	758	$	—	$	2,597	$	2,597
Residential		76		10		—		76		76
Home Equity		9		9		—		9		9
Installment		140		100		—		140		140
Credit Card		—		—		—		—		—
Total impaired loans	$	2,822	$	877	$	—	$	2,822	$	2,822

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands):

	Six Months				Three Months
	June 30				June 30
	2012		2011		2012		2011
Average investment in impaired loans	$	3,799	$	361	$	3,573	$	875
Interest income recognized on an accrual basis on impaired loans	$	81	$	15	$	71	$	18

Schedule of classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system

The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of June 30, 2012 and December 31, 2011 (in thousands):

			Special
June 30, 2012	Pass		Mention		Substandard		Doubtful		Total
Commercial	$	257,160	$	8,624	$	1,589	$	3,466	$	270,839
Residential		120,391		2,018		488		—		122,897
Home Equity		16,579		236		—		—		16,815
Installment		12,586		328		33		—		12,947
Credit Card		583		—		8		—		591
Total	$	407,299	$	11,206	$	2,118	$	3,466	$	424,089

			Special
Dec. 31, 2011	Pass		Mention		Substandard		Doubtful		Total
Commercial	$	218,353	$	7,752	$	2,655	$	2,597	$	231,357
Residential		111,105		1,157		491		—		112,753
Home Equity		15,750		96		75		9		15,930
Installment		12,806		242		29		140		13,217
Credit Card		565		—		—		—		565
Total	$	358,579	$	9,247	$	3,250	$	2,746	$	373,822

Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2012 and December 31, 2011 (in thousands):

		Current	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Non- Accrual		Total Loans
June 30, 2012
Commercial	$	264,545	$	1,655	$	1,041	$	127	$	2,823	$	3,471	$	270,839
Residential		122,367		382		72		—		454		76		122,897
Home Equity		16,805		10		—		—		10		—		16,815
Installment		12,841		54		13		10		77		29		12,947
Credit Card		591		—		—		—		—		—		591
Total	$	417,149	$	2,101	$	1,126	$	137	$	3,364	$	3,576	$	424,089

		Current	30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due		Total Past Due		Non- Accrual		Total Loans
Dec 31, 2011
Commercial	$	225,618	$	448		2,836	$	2	$	3,286	$	2,453	$	231,357
Residential		111,022		1,593		—		62		1,655		76		112,753
Home Equity		15,846		—		84		—		84		—		15,930
Installment		12,888		138		26		2		166		163		13,217
Credit Card		565		—		—		—		—		—		565
Total	$	365,939	$	2,179	$	2,946		66	$	5,191	$	2,692	$	373,822

Schedule of troubled debt restructurings

The following table presents details related to loans identified as Troubled Debt Restructurings (TDRs) during the three months ended June 30, 2012:

	New TDRs (1)
	For the Six Months Ended						For the Period  Ended
	30-Jun-12						31-Dec-11
(Unaudited, dollars in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:		—		—		—		—		—		—
Land and construction		1		908		898		—		—		—
Other		—		1		103		103
Total commercial real estate		1		908		898		1		103		103
Commercial and industrial		—		—		—		—		—		—
Residential real estate		—		—		—		1		415		415
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total		1		908		898		2		518		518

^{(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.}

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Investments (Details 2) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Held to Maturity securities Amortized Cost, By Maturity
Within one year	$ 115
After one year, but within five
After five years, but within ten	5,957
After ten Years	10,434
Total	16,506
Held to Maturity securities Approximate Fair Values, By Maturity
Within one year	115
After one year, but within five
After five years, but within ten	6,326
After ten Years	10,807
Total	17,248
Available for Sale Securities, Amortized Cost, By Maturity
Within one year
After one year, but within five	28,905
After five years, but within ten	30,858
After ten Years	34,019
Total	93,782
Available for Sale Securities, Approximate Fair Values, By Maturity
Within one year
After one year, but within five	29,558
After five years, but within ten	31,018
After ten Years	34,254
Fair Value	$ 94,830	$ 99,366

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Loans (Details 2) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Commercial	Dec. 31, 2011 Commercial	Jun. 30, 2012 Residential	Dec. 31, 2011 Residential	Jun. 30, 2012 Home Equity	Dec. 31, 2011 Home Equity	Jun. 30, 2012 Installment	Dec. 31, 2011 Installment	Jun. 30, 2012 Credit Card	Dec. 31, 2011 Credit Card	Dec. 31, 2011 Total
Impaired Loans with Specific Allowance, Recorded Investment	$ 3,574		$ 3,466	$ 2,597	$ 76	$ 76		$ 9	$ 32	$ 140			$ 2,822
Impaired Loans with Specific Allowance, Related Allowance	723		683	758	16	10		9	24	100			877
Impaired Loans with No Specific Allowance, Recorded Investment
Total Impaired Loans, Recorded Investment	3,574		3,466	2,597	76	76		9	32	140			2,822
Total Impaired Loans, Unpaid Principal Balance	3,574		3,466	2,597	76	76		9	32	140			2,822
Average investment in impaired loans	3,799	361
Interest income recognized on an accrual basis on impaired loans	$ 81	$ 15

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Borrowed Funds (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Borrowings from the FHLB	$ 9,652	$ 9,767
Fixed interest rate note, originating April 1999, due April 2014
Borrowings from the FHLB	1,000	1,000
Interest rate on debt security (as a percent)	5.41%
Fixed interest rate note, originating January 2005, due January 2020
Borrowings from the FHLB	807	851
Interest rate on debt security (as a percent)	5.14%
Monthly installments	11
Fixed interest rate note, originating April 2002, due May 2017
Borrowings from the FHLB	623	631
Interest rate on debt security (as a percent)	5.90%
Fixed interest rate note, originating July 2006, due July 2016
Borrowings from the FHLB	1,280	1,301
Interest rate on debt security (as a percent)	4.50%
Monthly installments	8
Fixed interest rate note, originating October 2006, due October 2021
Borrowings from the FHLB	1,057	1,068
Interest rate on debt security (as a percent)	5.20%
Monthly installments	6
Fixed interest rate note, originating February 2007, due February 2022
Borrowings from the FHLB	888	896
Interest rate on debt security (as a percent)	5.22%
Monthly installments	5
Fixed interest rate note, originating April 2007, due April 2022
Borrowings from the FHLB	1,005	1,015
Interest rate on debt security (as a percent)	5.18%
Monthly installments	6
Floating interest rate note, originating March 2003, due December 2011
Borrowings from the FHLB
Interest rate on debt security (as a percent)	0.00%
Fixed interest rate note, originating December 2007, due December 2017
Borrowings from the FHLB	992	1,005
Interest rate on debt security (as a percent)	5.25%
Monthly installments	7
Fixed interest rate note originating March 2008, due March 2013
Borrowings from the FHLB	$ 2,000	$ 2,000
Interest rate on debt security (as a percent)	2.37%

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Consolidated Statements of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements Of Comprehensive Income
Net Income	$ 1,678	$ 1,302
Securities available for sale not other than temporarily impaired:
Gains during the year	290	410
Income tax effect	(116)	(164)
Other comprehensive income	174	246
Comprehensive income	$ 1,852	$ 1,548

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Net Earnings Per Common Share

6 Months Ended

Jun. 30, 2012

Net Earnings Per Common Share

Net Income Per Common Share

Note 4 – Net Income Per Common Share

MVB determines basic earnings per common share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is determined by dividing net income by the weighted average number of shares outstanding increased by the number of shares that would be issued assuming the exercise of stock options. At June 30, 2012 and 2011, stock options to purchase 172,880 and 148,423shares at anaverage price of $15.63 and $15.13, respectively, were outstanding. For the three months ended June 30, 2012 and 2011, the dilutive effect of stock options was 50,057and 36,141 shares, respectively.

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Borrowed Funds (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Maturities of borrowings over the next five years
2012	$ 127
2013	2,234
2014	1,257
2015	271
2016	1,353
Thereafter	8,534
Total	$ 13,776

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Loans (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Total Loans	$ 424,089	$ 373,822
Individually evaluated for impairment	3,574	856
Collectively evaluated for impairment	420,515	293,188
Commercial
Total Loans	270,839	231,357
Individually evaluated for impairment	3,466	393
Collectively evaluated for impairment	267,373	194,307
Residential
Total Loans	122,897	112,753
Individually evaluated for impairment	76	197
Collectively evaluated for impairment	122,821	71,489
Home Equity
Total Loans	16,815	15,930
Individually evaluated for impairment		262
Collectively evaluated for impairment	16,815	14,072
Installment
Total Loans	12,947	13,217
Individually evaluated for impairment	32
Collectively evaluated for impairment	12,915	12,830
Credit Card
Total Loans	591	565
Individually evaluated for impairment		4
Collectively evaluated for impairment	$ 591	$ 490