MVB Financial sells $73 million in securities as part of repositioning

FAIRMONT, W.Va. - MVB Financial Corp. (NASDAQ:MVBF) announced Monday it has sold approximately $73 million in book value of available-for-sale investment securities as part of a strategic repositioning of its investment portfolio. The company, currently trading near its 52-week high of $26.36, has shown strong momentum with a remarkable 62% price return over the past six months, according to InvestingPro data.

The sale included $49 million of municipal securities, $15 million of U.S. sponsored mortgage-backed securities, and $9 million of U.S. government agency securities. The securities had a weighted-average tax-equivalent yield of 1.70% and a weighted-average life of approximately 9.6 years.

The transaction resulted in a pre-tax loss of approximately $7.6 million, which will be recognized in the company’s third quarter 2025 financial results. MVB Bank plans to reinvest the proceeds into higher-yielding securities that align with its current risk and asset/liability management objectives.

According to the company’s press release statement, the loss on the securities sale is expected to have a neutral impact on consolidated shareholders’ equity and tangible book value per share, as unrealized losses on available-for-sale securities are already reflected in shareholders’ equity.

"This repositioning accelerates our path to stronger earnings and positions MVB for enhanced profitability," said Larry F. Mazza, President and Chief Executive Officer of MVB Financial.

The company stated that the securities repositioning, combined with expense efficiencies from its recently announced sale of Victor Technologies, are expected to add approximately $0.30 to $0.35 to earnings per share on an annualized basis.

MVB Financial reported that the Bank’s regulatory capital ratios are expected to remain well above well-capitalized thresholds following the transaction. Additional details will be provided in the company’s third quarter earnings release.

MVB Financial Corp. is the holding company of MVB Bank, Inc., which provides financial services to individuals and corporate clients in the Mid-Atlantic region. With a market capitalization of approximately $334 million and a price-to-book ratio of 1.1, the company maintains healthy debt levels with a total debt to capital ratio of 0.19. Get deeper insights into MVB Financial’s valuation and growth potential with InvestingPro, which offers exclusive analysis and 8 additional ProTips for informed investment decisions.

In other recent news, MVB Financial Corp. reported positive developments in its second quarter performance, highlighting accelerated loan growth and an 8.5% increase in deposits, despite facing seasonal challenges. The company also announced it will maintain its quarterly cash dividend of $0.17 per share, scheduled for payment on September 15, 2025, marking the third dividend for the year. Additionally, MVB Financial revealed executive changes, with Donald T. Robinson stepping down from his roles as President and Chief Financial Officer, effective July 14, 2025. CEO Larry F. Mazza will take on the role of President while continuing his current duties. Michael R. Sumbs has been appointed as Executive Vice President and Chief Financial Officer, and Jonathan T. Logan will serve as Chief Accounting Officer. These recent developments reflect MVB Financial’s ongoing strategic adjustments and financial performance.

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