MVB Financial Q3 net income drops on higher credit loss provision

Overview

• Fintech-focused bank's Q3 net income fell sharply to $0.4 mln, or $0.03 per share

• Net interest income rose 1% from prior quarter and is up 18% year-to-date

• Q3 earnings impacted by $9.9 mln provision for credit losses, mainly from a single land loan

Outlook

• Company expects funding diversification and payments revenue growth to support future financial performance

Result Drivers

• PAYMENTS DEPOSIT GROWTH - Co said growth in payments-related deposits and new fintech partnerships diversified funding and reduced cost of funds

• CREDIT LOSS PROVISION - Elevated provision for credit losses mainly tied to a single land loan weighed on earnings

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 $34.00, about 14.7% above its October 28 closing price of $29.64

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 29 - First Northwest Bancorp posts Q3 net loss on higher credit costs

• Oct 29 - BCB Bancorp Q3 net loss widens on higher credit costs

• Oct 29 - National Capital Bancorp Q3 profit drops on higher provisions

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)