REGULATORY CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Capital adequacy guidelines have recently changed as a result of the Dodd-Frank Act and a separate, international capital initiative known as “Basel III.” Regulators have issued rules implementing these requirements (“Revised Capital Rules”). Among other things, the Revised Capital Rules raise the minimum thresholds for required capital and revise certain aspects of the definitions and elements of the capital that can be used to satisfy these required minimum thresholds. While the rules became effective on January 1, 2014 for certain large banking organizations, most banking organizations, including MVB Financial Corp and the Bank, were required to begin complying with these new requirements on January 1, 2015. These requirements were fully phased in during 2018.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Tier 1 common equity to risk-weighted assets, and of Tier 1 capital to average assets, as defined. As of December 31, 2018 and 2017, the Company meets all capital adequacy requirements to which it is subject.

The most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 common equity risk-based and Tier 1 leverage ratios as set forth in the table below. Both the Company’s and the Bank’s actual capital amounts and ratios are presented in the table below.

	Actual			Minimum to be Well Capitalized			Minimum for Capital Adequacy Purposes with Capital Buffer 1			Minimum for Capital Adequacy Purposes
(Dollars in thousands)	Amount		Ratio	Amount		Ratio	Amount		Ratio	Amount		Ratio
As of December 31, 2018
Total Capital (to risk-weighted assets)
Consolidated	$	193,495	13.8%	N/A		N/A	N/A		N/A	$	112,299	8.0%
Subsidiary Bank	$	186,127	13.3%	$	140,065	10.0%	$	138,314	9.88%	$	112,052	8.0%
Tier 1 Capital (to risk-weighted assets)
Consolidated	$	168,672	12.0%	N/A		N/A	N/A		N/A	$	84,224	6.0%
Subsidiary Bank	$	174,704	12.5%	$	112,052	8.0%	$	110,301	7.88%	$	84,039	6.0%
Common Equity Tier 1 Capital (to risk-weighted assets)
Consolidated	$	156,714	11.2%	N/A		N/A	N/A		N/A	$	63,168	4.5%
Subsidiary Bank	$	174,704	12.5%	$	91,042	6.5%	$	89,292	6.38%	$	63,029	4.5%
Tier 1 Capital (to average assets)
Consolidated	$	168,672	9.9%	N/A		N/A	N/A		N/A	$	68,375	4.0%
Subsidiary Bank	$	174,704	10.2%	$	85,315	5.0%	N/A		N/A	$	68,252	4.0%
As of December 31, 2017
Total Capital (to risk-weighted assets)
Consolidated	$	178,147	14.9%	N/A		N/A	N/A		N/A	$	95,848	8.0%
Subsidiary Bank	$	169,536	14.2%	$	119,231	10.0%	$	110,289	9.25%	$	95,385	8.0%
Tier 1 Capital (to risk-weighted assets)
Consolidated	$	138,308	11.5%	N/A		N/A	N/A		N/A	$	71,886	6.0%
Subsidiary Bank	$	159,097	13.3%	$	95,385	8.0%	$	86,443	7.25%	$	71,539	6.0%
Common Equity Tier 1 Capital (to risk-weighted assets)
Consolidated	$	126,350	10.6%	N/A		N/A	N/A		N/A	$	53,915	4.5%
Subsidiary Bank	$	159,097	13.3%	$	77,500	6.5%	$	68,558	5.75%	$	53,654	4.5%
Tier 1 Capital (to average assets)
Consolidated	$	138,308	9.3%	N/A		N/A	N/A		N/A	$	58,667	4.0%
Subsidiary Bank	$	159,097	10.7%	$	73,119	5.0%	N/A		N/A	$	58,495	4.0%

¹ The capital conservation buffer requirement will be phased in over three years beginning in 2016. The capital buffer requirement effectively raises the minimum required common equity Tier 1 capital ratio to 7.0%, the Tier 1 capital ratio to 8.5% and the total capital to 10.5% on a fully phased-in basis.