Key Highlights

  • Net income was $0.4 million, or $0.03 per diluted share, versus $17.1 million, or $1.32, a year earlier.
  • The provision for Credit losses was $9.9 million, up from $4.7 million in the second quarter.
  • Net interest income rose to $32.6 million, and core net interest Margin was 4.02%.
  • Fintech Payments deposits reached $766.0 million, or 24.8% of total deposits.
  • Nonperforming loans were $46.8 million, or 1.9% of total loans.

A near-zero quarter driven by credit provisions

MVB Financial (NASDAQ:MVBF) is the Holding Company for MVB Bank, a fintech-enabled bank based in Fairmont, West Virginia that powers payments, card issuance, banking-as-a-service and online gaming programs. It reported third quarter 2026 results on October 29, 2026.

Net income was $0.4 million, or $0.03 per diluted share, compared with $12.3 million, or $0.93, in the second quarter and $17.1 million, or $1.32, a year earlier.

The provision for credit losses was $9.9 million, up from $4.7 million in the second quarter and $4.4 million a year ago. It reflected higher specific reserves on one acquisition-and-development land Loan and other credits, including exposures in the legacy SBA portfolio and loan growth.

Net interest income and margin keep improving

Net interest income rose 1.0% to $32.6 million from $32.3 million in the second quarter, and was up from $26.6 million a year earlier. Year to date, it reached $93.3 million, up 18.1%.

The fully tax equivalent margin was 4.02%, compared with 4.16% in the second quarter, when a nonrecurring item boosted it. The core margin rose 15 basis points, from 3.87% to 4.02%. Total cost of funds declined six basis points to 2.07%.

Total loans grew $43.8 million, or 1.8%, to $2.52 billion, marking the sixth consecutive quarter of loan growth.

Fintech deposits grow while noninterest income normalizes

Fintech Payments deposits increased to $766.0 million, up 28.1% from the prior quarter and 55.4% from a year earlier. Total deposits were $3.09 billion, down $23.6 million, or 0.8%. It onboarded four new Fintech partners in the quarter, bringing the year-to-date total to nine.

Noninterest income was $7.8 million, compared with $18.8 million in the second quarter, which included a $10.0 million pretax gain on a fintech investment, and $34.6 million a year ago, which included a $34.1 million gain on divestiture activity. Payment card and service charge income was $5.2 million, down 12.8% sequentially on seasonal gaming activity but up 39.6% from the year-earlier quarter.

Noninterest expense fell 1.9% to $29.8 million.

Asset quality and Capital under review

Nonperforming loans rose to $46.8 million, or 1.9% of total loans, from $29.2 million, or 1.2%, at June 30, 2026. Of the $17.6 million increase, $13.1 million came from the one land loan.

Net charge-offs were $2.5 million, or 0.41% of average loans annualized. The allowance for credit losses on loans increased to $36.2 million, or 1.44% of loans, from $28.2 million, or 1.14%.

President and Chief Executive Officer Larry F. Mazza said the legacy SBA portfolio, wound down since 2022, now totals about $23 million, and that the company has not observed broader deterioration across the loan book.

Capital ratios and what comes next

The Community Bank Leverage Ratio was 9.7%, the Tier 1 Risk-Based Capital Ratio was 11.3% and MVB Bank's Total Risk-Based Capital Ratio was 12.6%, compared with 10.3%, 12.2% and 13.2% at the prior quarter-end.

Book value per share was $25.35, down from $26.61. The company attributed the decline mainly to accumulated other comprehensive loss, which rose from $18.0 million to $32.6 million.

Observers will likely watch whether nonperforming loans stabilize after the land loan, whether Fintech Payments deposits keep lowering funding costs and how capital ratios move after this quarter.