MVB Financial Q2 profit surges as loan and deposit growth continue

Overview

• US fintech-enabled bank's Q2 net income and EPS rose sharply from prior periods

• Loan and deposit balances grew for fifth consecutive quarter, driven by payments-related deposits

• Company repurchased 48,432 shares for $1.2 mln under existing buyback program

Outlook

• Company did not provide specific guidance for the current qtr or full yr

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said fifth consecutive qtr of loan and deposit growth was driven by improved market conditions and payments-related deposits

• FINTECH INVESTMENT GAIN - Q2 results included a $10 mln pre-tax gain from an existing fintech investment

• PAYMENTS BUSINESS MOMENTUM - Growth in payment card and service charge income contributed to higher noninterest income and deposit generation

Company press release: ID:nBw6BgD16a

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", 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 $32.00, about 9.8% above its July 27 closing price of $29.14

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 27 - Capital Bancorp Q2 net income, EPS beat estimates as loans and deposits grow

• July 27 - Commercial BancGroup Q2 net income rises, driven by loan growth

• July 28 - PayPal presses on with turnaround in pivotal quarter as sale questions linger

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.)