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 provisioning

MVB Financial (NASDAQ:MVBF) is the Holding Company for MVB Bank, a fintech-enabled bank in Fairmont, West Virginia that powers payments, card issuance, banking-as-a-service and online gaming programs for Fintech companies. The company 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 was $93.3 million, up 18.1%.

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

Total loans grew $43.8 million, or 1.8%, to $2.52 billion, 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%. The company onboarded four new fintech partners in the quarter, bringing the year to date total to nine.

Noninterest income was $7.8 million, versus $18.8 million in the second quarter, which had 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 in focus

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 portfolio.

Capital ratios and what to watch 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 rising from $18.0 million to $32.6 million.

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