MVB Financial Corp., a $3.5 billion asset bank, said Thursday it is expanding its fintech banking services faster, narrowing a pipeline of roughly 50 prospects toward a projected 20 client closings this year.
President and CEO Larry Mazza told attendees of the Small-Cap Virtual Conference, hosted by Sidoti, that the company — which he called "the quiet company that is fueling fintechs" — closed two fintech clients in 2024 and five in 2025, with 2027 expected to exceed the current year's pace. The firm won three new Fiserv clients over a single weekend, Mazza said, adding that adaptability has shaped the bank's strategy since 2016.
Total loans grew 15% year-over-year to $2.5 billion, while total deposits rose about $300 million to $3.1 billion. Certificates of deposit fell to roughly $425 million from $730 million at the start of 2025. Non-interest-bearing deposits account for nearly 35% of the deposit base, core bank deposits about 60%, and fintech deposits about 40%.
Second-quarter net income climbed about 136% compared with a year earlier. Payment card and service charge income tied to fintech payments surged 29% year-over-year, and non-interest income rose about 10%. Total revenue growth over a recent period reached 51.6%, with revenue growing nearly 22% over the trailing twelve months.
Capital ratios remained strong: tangible common equity stood at 9.7%, the leverage ratio was just over 10%, and common equity tier-one exceeded 12%. Return on common equity for the last twelve months was 12%. MVB Financial's market capitalization is $384 million, with a P/E ratio around 10 and a dividend yield of about 2.3% on quarterly payments of $0.17 per share, maintained for 19 consecutive years.
Mazza highlighted that MVB has received zero consent orders, contrasted with 22 fintech banks that received them between 2022 and 2024. The firm spent $22 million in 2023 and 2024 on risk and compliance infrastructure. Its risk and compliance headcount peaked at 160 and has been reduced to 116 through automation, with expectations to reach about 90 by the end of the fourth quarter. Digital workers numbered 38, with a target of 101 by the end of 2027, using Snowflake and the riskCanvas platform.
MVB Financial disclosed a portfolio of more than 15 fintech investments, about 95% of which do business with the bank. The company retains usage rights and profit-sharing from Victor, a fintech software platform it built with 17 developers over 4.5 years before selling to Jack Henry. Relationships with Credit Karma and TurboTax could eventually touch 6 million combined accounts and 66 million potential refund flows, respectively. The bank serves 38 digital gaming clients, including DraftKings, FanDuel, BetMGM and Polymarket.
