EX-99.1 2 q42022earningsrelease.htm EX-99.1 Document
Exhibit 99.1
mvbf.jpg
N E W S R E L E A S E


MVB Financial Corp. Announces Fourth Quarter and Full Year 2022 Results

(FAIRMONT, WV) February 17, 2023 – MVB Financial Corp. (NASDAQ: MVBF) (“MVB Financial,” “MVB” or the “Company”), the holding company for MVB Bank, Inc. ("MVB Bank"), today announced financial results for the fourth quarter and year ended December 31, 2022, with reported net income of $6.5 million, or $0.52 basic and $0.50 diluted earnings per share for the three months ended December 31, 2022.
QuarterlyYear-to-Date
20222022202120222021
Fourth QuarterThird QuarterFourth Quarter
Net income$6,509 $2,718 $9,959 $15,047 $39,121 
Earnings per share - basic$0.52 $0.22 $0.83 $1.23 $3.32 
Earnings per share - diluted$0.50 $0.21 $0.77 $1.17 $3.10 

“Our company made significant forward progress in 2022 on our MVB-F1: Success Loves Speed Strategic Plan, while adapting to challenging wet track conditions along the way,” said Larry F. Mazza, Chief Executive Officer, MVB Financial. “During the year, we welcomed new partners, delivered on the promise of our fast-track vehicles, and quickly adapted to setbacks brought on by market conditions.”

“Fourth quarter results reflected both notable progress and ongoing challenges. Our core earnings power improved, driven by net interest margin expansion and net interest income growth, while our actions to right-size the cost base drove expenses lower, resulting in positive operating leverage. Underlying it all, our solid foundation remained intact, as evidenced by capital strength, sound asset quality and growth in tangible book value per share.”

Mazza added, “Looking to 2023, higher interest rates, slowing economic growth and lingering market uncertainty continue to weigh on our mortgage business, fee income and certain of our Fintech initiatives. Despite these challenges, we are keenly focused on our North Star of earnings per share.”

FOURTH QUARTER 2022 HIGHLIGHTS

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•Net interest margin expansion drives strong growth in net interest income
◦On a tax-equivalent basis, net interest margin for the quarter ended December 31, 2022 was 4.57%, up 32 basis points versus the quarter ended September 30, 2022 and 129 basis points versus the quarter ended December 31, 2021. Please see the table below for a reconciliation between net interest margin and net interest margin on a fully tax-equivalent basis, a non-GAAP measure. Relative to both prior periods, net interest margin expansion primarily reflected higher loan yields, anchored by the large base of noninterest bearing Fintech, title and specialty deposits, partially offset by higher funding costs due to Fed rate increases.
◦Net interest income on a tax-equivalent basis totaled $33.7 million for the quarter ended December 31, 2022, up $3.6 million, or 12.0% from the quarter ended September 30, 2022 and $11.9 million, or 54.6%, from the quarter ended December 31, 2021.

•Expenses decline as cost-savings initiatives take effect, helping to drive positive operating leverage
◦Noninterest expense totaled $28.7 million for the quarter ended December 31, 2022, a decline of $1.2 million, or 4.1%, from the quarter ended September 30, 2022 and a decrease of $0.4 million, or 1.2%, from the quarter ended December 31, 2021. The decline relative to both prior periods was primarily attributable to lower salaries and employee benefits costs.
◦The company had previously announced that certain cost-savings initiatives were expected to drive a 12% reduction from MVB’s annualized third quarter 2022 noninterest expense base, with 75% of the projected cost savings to be achieved by the end of the first quarter of 2023, and the remainder expected to be fully captured by the end of the third quarter of 2023.
◦As compared to the prior quarter, total revenues (net interest income, plus noninterest income) grew 4.6% and total noninterest expense declined 4.1%, resulting in strong positive operating leverage.

•Measures of foundational strength remained intact
◦Nonperforming loans totaled $11.2 million, or 0.5% of total loans, as of December 31, 2022, compared to 0.9% of total loans as of both September 30, 2022 and December 31, 2021. Criticized loans as a percentage of total loans were 3.0%, down from 3.4% as of September 30, 2022 and 5.4% as of December 31, 2021.
◦Net charge-offs were $5.4 million, or 0.91% of total loans on an annualized basis, for the quarter ended December 31, 2022, compared to $1.3 million, or 0.22% of total loans on an annualized basis, for the quarter ended September 30, 2022 and $1.2 million, or 0.25% of total loans on an annualized basis, for the quarter ended December 31, 2021. The increase in net charge-offs

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compared to both periods was driven by a charge-off of one commercial relationship, which was previously reserved, and increased charge-offs in our consumer loan portfolio.
◦The ratio of tangible common equity to tangible assets was 8.38% as of December 31, 2022, compared to 7.60% as of September 30, 2022 and 9.62% as of December 31, 2021.
◦Tangible book value (“TBV”) per share, a non-U.S. GAAP measure, was $20.25 as of December 31, 2022, an increase of 4.5% from September 30, 2022 and a decline of 8.7% from December 31, 2021. A reconciliation of TBV to its most comparable U.S. GAAP measure is included below.

•Balance sheet management drives sequential period decline in deposit balances
◦Deposits totaled $2.57 billion as of December 31, 2022, a decrease of $126.5 million, or 4.7%, from September 30, 2022 and an increase of $192.9 million, or 8.1%, from December 31, 2021.
◦Noninterest-bearing (“NIB”) deposits totaled $1.23 billion as of December 31, 2022, down $180.2 million, or 12.8%, from September 30, 2022 and up $111.1 million, or 9.9%, from December 31, 2021.
◦The decline in total deposits and NIB deposits as compared to September 30, 2022, reflects the use of off-balance sheet deposit networks to generate fee income, enhance capital and manage liquidity and concentration risk. Further, impacting the decease was a decline in title deposits due to the seasonality and overall slowdown of the mortgage industry. Total off-balance sheet deposits, including gaming and banking as a service relationships, total $724.0 million, an increase of $156.0 million, or 27.5%, compared to September 30, 2022 and $241.8 million, or 50.1%, from December 31, 2021. Growth in NIB balances as compared to December 31, 2021, primarily reflects an increase in Fintech deposits.

•Noninterest income declines on continued cyclical headwinds, loss on loan sales
◦Noninterest income totaled $6.3 million for the quarter ended December 31, 2022, a decrease of $1.9 million, or 22.8%, from the quarter ended September 30, 2022 and a decrease of $8.2 million, or 56.5%, from the quarter ended December 31, 2021.
◦Ongoing cyclical headwinds reflected weakness in mortgage banking and Fintech-related fee income. Specifically, equity method investment loss related to our investment in Intercoastal Mortgage Company, LLC (“ICM”) was $1.2 million for the quarter ended December 31, 2022, as compared to $0.8 million for the quarter ended September 30, 2022 and income of $1.8 million for the quarter ended December 31, 2021. Total payment card and service charge income was $1.7 million for the quarter ended December 31, 2022, as compared to $3.3 million for the quarter ended September 30, 2022 and $2.4 million for the quarter ended December 31, 2021.

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◦During fourth quarter 2022, the Company elected to exit its bitcoin mining portfolio including selling the remaining loans. As a result, the Company reported a loss of $3.8 million on the sale of $10.7 million of bitcoin mining loans, which represented MVB’s entire crypto-related lending exposure.
•M&A Update: Receipt of shareholder approval for acquisition of Integrated Financial Holdings, Inc.
◦In January 2023, MVB and Integrated Financial Holdings, Inc. jointly announced that each had received shareholder approval of a previously-announced merger, with MVB as the surviving company. The merger is currently expected to close in the [first] quarter of 2023, subject to satisfaction of customary closing conditions and receipt of necessary regulatory approvals.

INCOME STATEMENT
Net interest income on a tax-equivalent basis totaled $33.7 million for the quarter ended December 31, 2022, up $3.6 million, or 12.0%, from the quarter ended September 30, 2022 and $11.9 million, or 54.6%, from the quarter ended December 31, 2021. The increase in net interest income compared to the quarter ended September 30, 2022 primarily reflects higher loan yields from the Company’s commercial loan portfolio. The increase compared to the quarter ended December 31, 2021 generally reflects strong loan growth at favorable interest rates during 2022, primarily driven by the Company’s strategic lending partnerships growth vehicle and broad-based growth throughout CoRe Banking business.

Interest income increased $6.8 million, or 20.1%, compared to the quarter ended September 30, 2022 and increased $17.7 million, or 76.6%, compared to the quarter ended December 31, 2021. The tax-equivalent yield on loans was 6.1% for the quarter ended December 31, 2022, compared to 5.3% for the quarter ended September 30, 2022 and 4.6% for the quarter ended December 31, 2021. Higher loan yields generally reflect the impact of the Fed rate increases on our commercial loan portfolio. The higher loan yields compared to the quarter ended December 31, 2021 also reflect new loan production at favorable interest rates.

Interest expense increased $3.2 million, or 78.8%, compared to the quarter ended September 30, 2022 and decreased $5.7 million, or 369.1%, compared to the quarter ended December 31, 2021. The cost of funds was 1.00% for the quarter ended December 31, 2022, up 41 basis points compared to the quarter ended September 30, 2022 and 76 basis points compared to the quarter ended December 31, 2021. The increase from the prior quarter primarily reflected a change in deposit mix based on average balances, led by growth in average interest-bearing deposits as compared to relatively consistent average NIB deposits, as well as higher interest rates during the quarter. The increase in cost of funds compared to the prior year period mostly reflected higher interest rates and increased FHLB borrowings and subordinated debt during the quarter,

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partially offset by the relatively higher contribution of NIB deposits relative to the prior year.

On a fully tax-equivalent basis, net interest margin for the quarter ended December 31, 2022 was 4.57%, an increase of 32 basis points versus the quarter ended September 30, 2022 and 129 basis points versus the quarter ended December 31, 2021. The increase in net interest margin for both quarters reflected the impact of higher loan yields due to interest rate increases, partially offset by an increase in deposit costs. The average loan-to-deposit ratio during the quarter ended December 31, 2022 was 87.7%, compared to 92.5% for the quarter ended September 30, 2022 and 74.5% for the quarter ended December 31, 2021.

Noninterest income totaled $6.3 million for the quarter ended December 31, 2022, a decrease of $1.9 million, or 22.8%, from the quarter ended September 30, 2022 and a decrease of $8.2 million, or 56.5%, from the quarter ended December 31, 2021. The $1.9 million decrease in noninterest income from the quarter ended September 30, 2022 was primarily due to decreases in gain on sale of loans of $3.4 million, or 264.2%, compared to the quarter ended September 30, 2022. The $8.2 million decrease in noninterest income from the quarter ended December 31, 2021 was primarily due to decreases in equity method investment income of $4.2 million, or 148.3%, gain on sale of loans of $3.2 million, or 302.4%, and holding gain on equity securities of $3.4 million, or 169.0%. The decrease in gain on sale of loans was driven by the loss of $3.8 million on the sale of $10.7 million of bitcoin mining loans, which represented MVB’s entire crypto-related lending exposure. Included in noninterest income was a $2.0 million gain recognized as a result of the partial sale of the Company’s Interchecks investment, which also caused the investment to be reclassified from an equity method investment to an equity security in fourth quarter 2022.

Noninterest expense totaled $28.7 million for the quarter ended December 31, 2022, a decrease of $1.2 million, or 4.1%, from the quarter ended September 30, 2022 and $0.4 million, or 1.2%, from the quarter ended December 31, 2021. The $1.2 million decrease in noninterest expense from the quarter ended September 30, 2022 was due to a decrease in salaries and employee benefits of $1.4 million, as the Company began to implement the expense reduction initiatives announced in the prior quarter, partially offset by an increase in other operating expense of $0.2 million, primarily driven by increased servicing expense. The decrease compared to the quarter ended December 31, 2021 was driven by decreases of $1.2 million, or 6.7%, in salaries and employee benefits and $1.1 million, or 27.5% in professional fees, partially offset by increases of $1.0 million, or 55.5%, in other operating expense, primarily driven by increased servicing expense and $0.4 million, or 34.9%, in equipment depreciation and maintenance.


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BALANCE SHEET
Loans totaled $2.36 billion at December 31, 2022, a decrease of $112.0 million, or 4.5%, and an increase of $489.6 million, or 26.2%, as compared to September 30, 2022 and December 31, 2021, respectively. Adjusted for the removal of Paycheck Protection Program (“PPP”) loans from all periods, loan balances decreased by 4.3% from the quarter ended September 30, 2022 and increased by 35.0% from the quarter ended December 31, 2021. The decrease in loan balances compared to September 30, 2022 primarily reflect the Company’s balance sheet management as it contemplates future market uncertainty. Loan growth compared to December 31, 2021 was driven primarily by the Company’s strategic lending partnerships growth vehicle. Loans held-for-sale were $23.1 million as of December 31, 2022, compared to $20.0 million at September 30, 2022 and none December 31, 2021, led by MVB Bank’s government guaranteed lending growth vehicle.

Deposits totaled $2.57 billion as of December 31, 2022, a decrease of $126.5 million, or 4.7%, from September 30, 2022 and an increase of $192.9 million, or 8.1%, from December 31, 2021. NIB deposits totaled $1.23 billion as of December 31, 2022, a decrease of $180.2 million, or 12.8%, from September 30, 2022 and an increase of $111.1 million, or 9.9%, from December 31, 2021. The decrease in both total deposits and NIB deposits in the current quarter is primarily due to the Company’s utilization of off-balance sheet deposit networks to generate fee income, enhance capital and manage liquidity and concentration risk. Growth in NIB deposit balances compared to December 31, 2021 primarily reflects higher Fintech deposits, while the increase in total deposits also reflects an increase in brokered deposits and other certificates of deposit.

CAPITAL
The Community Bank Leverage Ratio was 9.83% as of December 31, 2022, compared to 11.1% as of September 30, 2022 and 11.6% as of December 31, 2021. MVB’s Tier 1 Risk-Based Capital Ratio was 12.4% as of December 31, 2022, compared to 13.1% as of September 30, 2022 and 15.8% as of December 31, 2021. The Bank’s Total Risk-Based Capital Ratio was 13.4% as of December 31, 2022, compared to 14.1% as of September 30, 2022 and 16.7% as of December 31, 2021.

The Company issued a quarterly cash dividend of $0.17 per share for the quarter ended December 31, 2022, consistent with the quarter ended September 30, 2022 and up $0.02, or 13.3%, from the quarter ended December 31, 2021.

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ASSET QUALITY
Nonperforming loans totaled $11.2 million, or 0.5% of total loans, as of December 31, 2022, compared to 0.9% of total loans as of both September 30, 2022 and December 31, 2021. Criticized loans as a percentage of total loans were 3.0%, as compared to 3.4% as of September 30, 2022 and 5.4% as of December 31, 2021.

Net charge-offs were $5.4 million, or 0.9% of total loans on an annualized basis, for the quarter ended December 31, 2022, compared to $1.3 million, or 0.2% of total loans on an annualized basis, for the quarter ended September 30, 2022 and $1.2 million, or 0.3% of total loans on an annualized basis, for the quarter ended December 31, 2021. Charge-offs during the quarter include $2.9 million related to one commercial relationship, previously reserved, and $2.5 million related to the consumer loan portfolio.

Changes to the outstanding balances of the loan portfolios and the level of recognized charge-offs are all contributing factors in the provision for loan losses. The provision for loan losses totaled $2.7 million for the quarter ended December 31, 2022, compared to $5.1 million for the quarter ended September 30, 2022 and release of allowance of $5.7 million for the quarter ended December 31, 2021. Allowance for loan losses to total loans was 1.01% as of December 31, 2022, as compared to 1.07% as of September 30, 2022 and 0.98% as of December 31, 2021.

About MVB Financial Corp.
MVB Financial, the holding company of MVB Bank, is publicly traded on The Nasdaq Capital Market® (“Nasdaq”) under the ticker “MVBF.”

MVB is a financial holding company headquartered in Fairmont, West Virginia. Through its subsidiary, MVB Bank, and MVB Bank’s subsidiaries, MVB Financial provides financial services to individuals and corporate clients in the Mid-Atlantic region and beyond.

Nasdaq is a leading global provider of trading, clearing, exchange technology, listing, information and public company services.

For more information about MVB, please visit ir.mvbbanking.com.

Forward-looking Statements
MVB Financial has made forward-looking statements, within the meaning of Section 27A of the Securities Act of

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1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in this press release that are intended to be covered by the protections provided under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about the future and are subject to risks and uncertainties. Forward-looking statements include, without limitation, information concerning possible or assumed future results of operations of the Company and its subsidiaries. Forward-looking statements can be identified by the use of words such as “may,” “could,” “should,” “would,” “will,” “plans,” “believes,” “estimates,” “expects,” “anticipates,” “intends,” “continues” or the negative of those terms or similar expressions. Note that many factors could affect the future financial results of the Company and its subsidiaries, both individually and collectively, and could cause those results to differ materially from those expressed in forward-looking statements. Therefore, undue reliance should not be placed upon any forward-looking statements. Those factors include but are not limited to: market, economic, operational, liquidity and credit risk; changes in market interest rates; inability to achieve anticipated synergies and successfully integrate recent mergers and acquisitions; inability to successfully execute business plans, including strategies related to investments in Fintech companies; competition; length and severity of the COVID-19 pandemic and its impact on the Company’s business and financial condition; changes in economic, business and political conditions; changes in demand for loan products and deposit flow; operational risks and risk management failures; and government regulation and supervision. Additional factors that may cause actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as well as its other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Except as required by law, the Company disclaims any obligation to update, revise or correct any forward-looking statements.

Accounting standards require the consideration of subsequent events occurring after the balance sheet date for matters that require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s financial statements when filed with the SEC. Accordingly, the consolidated financial information in this announcement is subject to change.

Questions or comments concerning this Earnings Release should be directed to:

MVB Financial Corp.
Donald T. Robinson, President and Chief Financial Officer
(304) 598-3500
drobinson@mvbbanking.com


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Amy Baker, VP, Corporate Communications and Marketing
(844) 682-2265
abaker@mvbbanking.com

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MVB Financial Corp.
Financial Highlights
Consolidated Statements of Income
(Unaudited) (Dollars in thousands, except per share data)
QuarterlyYear-to-Date
20222022202120222021
Fourth QuarterThird QuarterFourth Quarter
Interest income$40,702 $33,903 $23,049 $125,957 $83,429 
Interest expense7,253 4,057 1,546 14,154 6,270 
Net interest income33,449 29,846 21,503 111,803 77,159 
Provision (release of allowance) for loan losses2,694 5,120 (5,733)14,194 (6,275)
Net interest income after provision (release of allowance) for loan losses30,755 24,726 27,236 97,609 83,434 
Noninterest income6,324 8,191 14,542 38,294 62,596 
Noninterest expense:
Salaries and employee benefits16,902 18,316 18,110 72,162 60,210 
Other expense11,840 11,649 10,993 45,226 37,242 
Total noninterest expenses28,742 29,965 29,103 117,388 97,452 
Income before income taxes8,337 2,952 12,675 18,515 48,578 
Income tax expense1,967 397 2,876 4,128 9,882 
Net income before noncontrolling interest6,370 2,555 9,799 14,387 38,696 
Net loss attributable to noncontrolling interest139 163 160 660 425 
Net income attributable to parent6,509 2,718 9,959 15,047 39,121 
Preferred dividends— — — — 35 
Net income available to common shareholders$6,509 $2,718 $9,959 $15,047 $39,086 
Earnings per share - basic$0.52 $0.22 $0.83 $1.23 $3.32 
Earnings per share - diluted$0.50 $0.21 $0.77 $1.17 $3.10 


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Noninterest Income
(Unaudited) (Dollars in thousands)
QuarterlyYear-to-Date
20222022202120222021
Fourth QuarterThird QuarterFourth Quarter
Card acquiring income$497 $560 $1,713 $2,790 $3,817 
Service charges on deposits684 889 135 3,418 634 
Interchange income497 1,864 572 5,440 3,073 
Total payment card and service charge income1,678 3,313 2,420 11,648 7,524 
Income (loss) from ICM equity method investment
(1,174)(831)1,813 (23)16,383 
Income (loss) from other equity method investments(205)(190)1,045 (690)1,045 
Total equity method investment income (loss)(1,379)(1,021)2,858 (713)17,428 
Compliance and consulting income4,149 3,736 3,463 15,504 9,625 
Gain (loss) on sale of loans(2,131)1,298 1,053 1,655 4,178 
Investment portfolio gains (losses)(1,397)(217)2,521 925 7,656 
Gains on acquisition and divestiture activity— — — — 10,783 
Other noninterest income5,404 1,082 2,227 9,275 5,402 
Total noninterest income$6,324 $8,191 $14,542 $38,294 $62,596 


Condensed Consolidated Balance Sheets
(Unaudited) (Dollars in thousands)
December 31, 2022September 30, 2022December 31, 2021
Cash and cash equivalents$40,280 $79,946 $307,437 
Certificates of deposit with banks— — 2,719 
Securities available-for-sale, at fair value379,814 366,742 421,466 
Equity securities38,744 34,101 32,402 
Loans held-for-sale23,126 19,977 — 
Loans receivable2,359,416 2,471,395 1,869,838 
Less: Allowance for loan losses(23,837)(26,515)(18,266)
Loans receivable, net2,335,579 2,444,880 1,851,572 
Premises and equipment, net23,653 24,668 25,052 
Goodwill3,988 3,988 3,988 
Other assets210,437 165,620 147,813 
Total assets$3,055,621 $3,139,922 $2,792,449 
Noninterest-bearing deposits$1,231,544 $1,411,772 $1,120,433 
Interest-bearing deposits1,338,938 1,285,186 1,257,172 
FHLB and other borrowings102,333 73,328 — 
Secured borrowings9,765 — — 
Subordinated debt73,286 73,222 73,030 
Other liabilities48,129 52,054 66,511 
Stockholders' equity, including noncontrolling interest261,391 244,360 275,303 
Total liabilities and stockholders' equity$3,055,621 $3,139,922 $2,792,449 

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Reportable Segments
(Unaudited)
Twelve Months Ended December 31, 2022CoRe BankingMortgage BankingProfessional ServicesEdge VenturesFinancial Holding CompanyIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$125,426 $429 $— $— $146 $(44)$125,957 
Interest expense10,919 — 39 5 3,234 (44)14,153 
Net interest income114,507 429 (39)(5)(3,088)— 111,804 
Provision for loan losses14,194 — — — — — 14,194 
Net interest income after provision for loan losses100,313 429 (39)(5)(3,088)— 97,610 
Noninterest income22,673 37 22,812 459 10,576 (18,263)38,294 
Noninterest Expenses:
Salaries and employee benefits36,960 8 15,276 3,336 16,582 — 72,162 
Other expense44,873 142 5,233 5,192 8,049 (18,263)45,226 
Total noninterest expenses81,833 150 20,509 8,528 24,631 (18,263)117,388 
Income (loss) before income taxes41,153 316 2,264 (8,074)(17,143)— 18,516 
Income tax expense (benefit)8,882 77 567 (1,926)(3,472)— 4,128 
Net income (loss)32,271 239 1,697 (6,148)(13,671)— 14,388 
Net loss attributable to noncontrolling interest— — 207 453 — — 660 
Net income (loss) available to common shareholders$32,271 $239 $1,904 $(5,695)$(13,671)$— $15,048 





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Twelve Months Ended December 31, 2021CoRe BankingMortgage BankingProfessional ServicesEdge VenturesFinancial Holding CompanyIntercompany EliminationsConsolidated
(Dollars in thousands)
Interest income$83,023 $411 $(8)$— $15 $(12)$83,429 
Interest expense4,078 — 16 — 2,188 (12)6,270 
Net interest income78,945 411 (24)— (2,173)— 77,159 
Release of allowance for loan losses(6,274)(1)— — — — (6,275)
Net interest income after release of allowance for loan losses85,219 412 (24)— (2,173)— 83,434 
Noninterest income33,179 16,342 14,931 71 11,103 (13,030)62,596 
Noninterest Expenses:
Salaries and employee benefits33,595 — 10,949 1,962 13,704 — 60,210 
Other expense37,033 16 4,095 2,555 6,573 (13,030)37,242 
Total noninterest expenses70,628 16 15,044 4,517 20,277 (13,030)97,452 
Income (loss) before income taxes47,770 16,738 (137)(4,446)(11,347)— 48,578 
Income tax expense (benefit)9,154 4,068 (105)(1,144)(2,091)— 9,882 
Net income (loss)38,616 12,670 (32)(3,302)(9,256)— 38,696 
Net loss attributable to noncontrolling interest— — 210 215 — — 425 
Net income (loss) attributable to parent38,616 12,670 178 (3,087)(9,256)— 39,121 
Preferred stock dividends— — — — 35 — 35 
Net income (loss) available to common shareholders$38,616 $12,670 $178 $(3,087)$(9,291)$— $39,086 





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Average Balances and Interest Rates
(Unaudited) (Dollars in thousands)
Three Months EndedThree Months EndedThree Months Ended
December 31, 2022September 30, 2022December 31, 2021
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
Assets
Interest-bearing balances with banks$113,500 $982 3.43 %$32,552 $111 1.35 %$376,667 $141 0.15 %
CDs with banks— — — 232 2 3.42 6,998 33 1.87 
Investment securities:
     Taxable233,839 1,114 1.89 231,953 897 1.53 258,534 573 0.88 
     Tax-exempt 2
136,313 1,343 3.91 144,719 1,346 3.69 183,736 1,447 3.12 
Loans and loans held-for-sale: 1
     Commercial 3
1,667,981 27,947 6.65 1,687,383 22,898 5.38 1,451,347 17,653 4.83 
     Tax-exempt 2
4,161 47 4.48 4,498 51 4.50 5,811 65 4.41 
     Real estate631,450 6,000 3.77 579,685 4,707 3.22 320,078 2,153 2.67 
     Consumer139,705 3,563 10.12 129,464 4,183 12.82 32,903 1,306 15.75 
Total loans2,443,297 37,557 6.10 2,401,030 31,839 5.26 1,810,139 21,177 4.64 
Total earning assets2,926,949 40,996 5.56 2,810,486 34,195 4.83 2,636,074 23,370 3.52 
Less: Allowance for loan losses(27,530)(23,083)(24,977)
Cash and due from banks5,643 5,399 6,751 
Other assets266,292 227,337 204,001 
     Total assets$3,171,354 $3,020,139 $2,821,849 
Liabilities
Deposits:
     NOW$791,227 $2,880 1.44 %$734,271 $1,393 0.75 %$711,805 $289 0.16 %
     Money market checking219,334 643 1.16 258,527 422 0.65 489,818 221 0.18 
     Savings77,416 263 1.35 71,370 153 0.85 36,455 1 0.01 
     IRAs6,053 20 1.31 6,132 17 1.10 6,439 18 1.11 
     CDs314,723 2,380 3.00 202,299 988 1.94 91,059 263 1.15 
Repurchase agreements and federal funds sold9,958 1 0.04 10,627 1 0.04 11,249 3 0.11 
FHLB and other borrowings11,128 115 4.10 48,058 311 2.57 79 — — 
Secured borrowings9,235 163 7.00 — — — — — — 
Subordinated debt73,254 787 4.26 73,190 771 4.18 72,995 751 4.08 
     Total interest-bearing liabilities1,512,328 7,252 1.90 1,404,474 4,056 1.15 1,419,899 1,546 0.43 
Noninterest-bearing demand deposits1,377,880 1,321,982 1,092,520 
Other liabilities40,264 37,019 42,318 
     Total liabilities2,930,472 2,763,475 2,554,737 
Stockholders’ equity
Preferred stock— — 597 
Common stock13,452 13,086 12,878 
Paid-in capital156,111 145,877 142,479 
Treasury stock(16,741)(16,741)(16,741)
Retained earnings129,853 144,816 129,896 
Accumulated other comprehensive loss(41,793)(30,915)(3,188)
     Total stockholders’ equity attributable to parent240,882 256,123 265,921 
Noncontrolling interest399 541 1,147 
     Total stockholders’ equity240,483 256,664 267,068 
     Total liabilities and stockholders’ equity$3,171,354 $3,020,139 $2,821,805 
Net interest spread (tax-equivalent)3.66 3.68 3.09 
Net interest income and margin (tax-equivalent) 2
$33,744 4.57 %$30,139 4.25 %$21,824 3.28 %
Less: Tax-equivalent adjustments$(295)$(293)$(320)
Net interest spread3.62 3.64 3.04 
Net interest income and margin$33,449 4.53 %$29,846 4.21 %$21,503 3.24 %
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
2 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.

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3 MVB Bank’s PPP loans totaling $13.6 million, $20.1 million and $131.7 million are included in this amount for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

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Twelve Months EndedTwelve Months Ended
December 31, 2022December 31, 2021
Average
Balance		Interest
Income/
Expense		Yield/
Cost		Average
Balance		Interest
Income/
Expense		Yield/
Cost
Assets
Interest-bearing balances with banks$232,935 $1,613 0.69 %$249,801 $305 0.12 %
CDs with banks1,033 24 2.32 10,406 201 1.93 
Investment securities:
     Taxable236,344 3,496 1.48 231,450 2,405 1.04 
     Tax-exempt 2
139,353 5,166 3.71 201,532 6,328 3.14 
Loans and loans held-for-sale: 1
     Commercial 3
1,594,069 87,845 5.51 1,387,273 63,551 4.58 
     Tax-exempt 2
4,661 203 4.36 6,646 300 4.51 
     Real estate487,044 15,721 3.23 307,829 9,662 3.14 
     Consumer103,345 13,017 12.60 15,890 2,069 13.02 
Total loans2,189,119 116,786 5.33 1,717,638 75,582 4.40 
Total earning assets2,798,784 127,085 4.54 2,410,827 84,821 3.52 
Less: Allowance for loan losses(22,248)(25,682)
Cash and due from banks5,670 13,874 
Other assets244,861 201,904 
     Total assets$3,027,067 $2,600,923 
Liabilities
Deposits:
     NOW$707,282 $4,724 0.67 %$673,547 $1,612 0.24 %
     Money market checking330,208 1,449 0.44 469,010 883 0.19 
     Savings56,697 418 0.74 42,800 5 0.01 
     IRAs6,216 71 1.14 9,674 121 1.25 
     CDs170,648 3,814 2.24 134,250 1,355 1.01 
Repurchase agreements and federal funds sold10,987 6 0.05 10,821 13 0.12 
FHLB and other borrowings15,494 437 2.82 25,275 93 0.37 
Secured borrowings2,328 163 7.00 — — — 
Subordinated debt73,159 3,072 4.20 51,149 2,188 4.28 
     Total interest-bearing liabilities1,373,019 14,154 1.03 1,416,526 6,270 0.44 
Noninterest-bearing demand deposits1,357,426 895,024 
Other liabilities41,098 38,100 
     Total liabilities2,771,543 2,349,650 
Stockholders’ equity
Preferred stock— 730 
Common stock13,320 12,614 
Paid-in capital147,728 140,610 
Treasury stock(16,741)(16,741)
Retained earnings138,135 112,842 
Accumulated other comprehensive income (loss)(26,918)534 
     Total stockholders’ equity attributable to parent255,524 250,589 
Noncontrolling interest637 683 
     Total stockholders’ equity256,161 251,272 
     Total liabilities and stockholders’ equity$3,027,067 $2,600,912 
Net interest spread (tax-equivalent)3.51 3.08 
Net interest income and margin (tax-equivalent) 2
$112,931 4.04 %$78,551 3.26 %
Less: Tax-equivalent adjustments$(1,128)$(1,392)
Net interest spread3.47 3.02 
Net interest income and margin$111,803 3.99 %$77,159 3.20 %
1 Non-accrual loans are included in total loan balances, lowering the effective yield for the portfolio in the aggregate.
2 In order to make pre-tax income and resultant yields on tax-exempt loans and investment securities comparable to those on taxable loans and investment securities, a tax-equivalent adjustment has been computed using a Federal tax rate of 21% for the periods presented, which is a non-GAAP financial measure. See the reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure following this table.
3 MVB Bank’s PPP loans totaling $13.6 million and $131.7 million are included in this amount for the years ended December 31, 2022 and December 31, 2021, respectively.


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The following table reconciles, for the periods shown below, net interest margin on a fully tax-equivalent basis:
Three Months EndedTwelve Months Ended
(Dollars in thousands)December 31, 2022September 30, 2022December 31, 2021December 31, 2022December 31, 2021
Net interest margin - U.S. GAAP basis
Net interest income$33,449 $29,846 $21,503 $111,803 $77,159 
Average interest-earning assets2,926,949 2,810,486 2,636,074 2,798,784 2,410,827 
Net interest margin4.53 %4.21 %3.24 %3.99 %3.20 %
Net interest margin - non-U.S. GAAP basis
Net interest income$33,449 $29,846 $21,503 $111,803 $77,159 
Impact of fully tax-equivalent adjustment295 293 320 1,128 1,392 
Net interest income on a fully tax-equivalent basis33,744 30,139 21,824 112,931 78,551 
Average interest-earning assets2,926,949 2,810,486 2,636,074 2,798,784 2,410,827 
Net interest margin on a fully tax-equivalent basis4.57 %4.25 %3.28 %4.04 %3.26 %

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Selected Financial Data
(Unaudited) (Dollars in thousands, except per share data)
QuarterlyYear-to-Date
20222022202120222021
Fourth QuarterThird QuarterFourth Quarter
Earnings and Per Share Data:
Net income$6,509 $2,718 $9,959 15,047 39,121 
Net income available to common shareholders$6,509 $2,718 $9,959 15,047 39,086 
Earnings per share - basic$0.52 $0.22 $0.83 $1.23 $3.32 
Earnings per share - diluted$0.50 $0.21 $0.77 $1.17 $3.10 
Cash dividends paid per common share$0.17 $0.17 $0.15 $0.68 $0.51 
Book value per common share$20.69 $19.85 $22.70 $20.69 $22.70 
Tangible book value per common share 1
$20.25 $19.38 $22.17 $20.25 $22.17 
Weighted-average shares outstanding - basic12,279,462 12,238,505 12,057,451 12,279,462 11,778,557 
Weighted-average shares outstanding - diluted12,870,734 12,854,951 12,944,919 12,870,734 12,613,620 
Performance Ratios:
Return on average assets 2
0.8 %0.4 %1.4 %0.5 %1.5 %
Return on average equity 2
10.8 %4.2 %15.0 %5.9 %15.6 %
Net interest margin 3 4
4.57 %4.25 %3.28 %4.04 %3.26 %
Efficiency ratio 5
72.3 %78.8 %80.7 %78.2 %69.7 %
Overhead ratio 2 6
3.6 %4.0 %4.1 %3.9 %3.7 %
Equity to assets8.5 %7.8 %9.8 %8.5 %9.8 %
Asset Quality Data and Ratios:
Charge-offs$7,878 $3,653 $1,619 $15,183 $1,619 
Recoveries$2,507 $2,313 $316 $6,560 $316 
Net loan charge-offs to total loans 2 7
0.9 %0.2 %0.1 %0.4 %0.1 %
Allowance for loan losses$23,837 $26,515 $18,266 $23,837 $18,266 
Allowance for loan losses to total loans 8
1.01 %1.07 %0.98 %1.01 %0.98 %
Nonperforming loans$11,165 $22,350 $17,713 $11,165 $17,713 
Nonperforming loans to total loans0.5 %0.9 %0.9 %0.5 %0.9 %
Intercoastal Mortgage Company, LLC Production Data9:
Mortgage pipeline$678,345 $792,388 $1,007,990 $678,345 $1,007,990 
Loans originated$407,070 $606,805 $1,046,977 $3,120,577 $6,269,371 
Loans closed$388,417 $615,585 $977,354 $2,628,149 $5,607,951 
Loans sold$326,003 $619,059 $957,153 $2,325,709 $5,326,029 
1 common equity less total goodwill and intangibles per common share, a non-U.S. GAAP measure
2 annualized for the quarterly periods presented
3 net interest income as a percentage of average interest-earning assets
4 presented on a fully tax-equivalent basis
5 noninterest expense as a percentage of net interest income and noninterest income, a non-U.S. GAAP measure
6 noninterest expense as a percentage of average assets, a non-U.S. GAAP measure
7 charge-offs less recoveries
8 excludes loans held for sale
9 information is related to Intercoastal Mortgage Company, LLC, an entity in which we have a 40% ownership interest that we account for as an equity method investment



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Non-GAAP Reconciliation: Tangible Book Value per Common Share
(Unaudited) (Dollars in thousands, except per share data)
December 31, 2022September 30, 2022December 31, 2021
Goodwill$3,988 $3,988 $3,988 
Intangibles1,631 1,806 2,316 
Total intangibles5,619 5,794 6,304 
Total equity attributable to parent261,084 243,913 274,328 
Less: Total intangibles(5,619)(5,794)(6,304)
Tangible common equity255,465 238,119 268,024 
Tangible common equity255,465 238,119 268,024 
Common shares outstanding (000s)12,61812,28712,087
Tangible book value per common share$20.25 $19.38 $22.17 

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