MVB Financial posts drop in Q2 net income

Overview

• MVB Financial Q2 net income falls short of company expectations due to loan growth timing

• Company reports 4.4% loan growth and 8.5% deposit growth in Q2

• Co repurchased 314,580 shares for $6.4 mln, indicating confidence in future performance

Outlook

• Company confident in delivering long-term value for stakeholders

• MVB Financial anticipates continued execution of cost control initiatives

Result Drivers

• LOAN DEMAND - Loan growth of 4.4% driven by increased demand and improved market conditions

• DEPOSIT STRATEGY - 8.5% deposit growth achieved despite seasonal headwinds, attributed to strategic execution in Fintech banking

• NONINTEREST INCOME - 13.4% rise in noninterest income primarily due to increased equity method investment income from mortgage segment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for MVB Financial Corp is $25.00, about 5.5% above its July 25 closing price of $23.62

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw9KPl6Qa