MVB Financial (MVBF) risk factors, FY2025 10-K

Risks Related to Economic and Market Conditions

1. 01Disruption or volatility in general business or economic conditions in the markets in which we operate, including elevated levels of inflation and fluctuations in interest rates, could adversely impact our business, financial condition and results of operationsNew
2. 02Financial challenges at other banking institutions could lead to depositor concerns that spread within the banking industry causing disruptive deposit outflows and other destabilizing results
3. 03Our business depends upon the general economic conditions and real estate markets of the State of West Virginia and the Commonwealth of Virginia, and may be adversely affected by downturns in these and the other local economies in which we operate48% rewritten
4. 04the value of the collateral securing loans and the stability of our deposit funding sourcesNew
5. 05Severe weather (including climate change) and natural disasters could have significant effects on our business30% rewritten

Risks Related to Our Business

1. 06Our non-residential real estate loans expose us to greater risks of non-payment and loss than residential mortgage loans, which may cause us to increase our allowance for credit losses, which would reduce net income
2. 07Our allowance for credit losses could become inadequate and reduce earnings and capital
3. 08The value of, and earnings from, our investments in ICM and Warp Speed may be significantly reduced if ICM and Warp Speed are not able to sell mortgages
4. 09Our largest source of revenue (net interest income) is subject to interest rate risk
5. 10l In general, for a given change in interest rates, the amount of change in value (positive or negative) is larger for assets and liabilities with longer remaining maturities. The shape of the yield curve may affect new loan yields, funding costs and investment income differently
6. 11Our gaming initiative has contributed significantly to our deposits and creates concentration risk in our deposit base35% rewritten
7. 12We may be adversely affected by the soundness of other financial institutions
8. 13We operate in a highly competitive industry and market area and failure to effectively compete could have a material adverse effect on our business, financial condition and results of operations
9. 14l Industry and general economic trends
10. 15The value of our goodwill and other intangible assets may decline in the future22% rewritten
11. 16New lines of business or new products and services, including Fintech investments, may subject us to additional risks
12. 17Potential acquisitions or dispositions of assets or businesses may disrupt our business and dilute stockholder value
13. 18l Potential changes in banking or tax laws or regulations that may affect the target company
14. 19We are subject to liquidity risk, which could disrupt our ability to meet our financial obligations
15. 20Any significant restriction or disruption of our ability to obtain funding from these or other sources could negatively affect our ability to satisfy our current and future financial obligations, which could materially affect our financial condition
16. 21Limited availability of borrowings and liquidity from the FHLB system and other sources could negatively impact earnings
17. 22Interruption to our information systems or breaches in security, including as a result of cyberattacks or other cyber incidents, could adversely affect our operations or otherwise harm our business
18. 23We continually encounter technological change and failure to continually adapt to such change could materially impact our financial condition and results of operations
19. 24Consumers may decide not to use banks to complete their financial transactions, or may deposit funds electronically with banks that have no branches within our market area, which could affect net income
20. 25Our operations rely on certain external vendors who may not perform in a satisfactory manner
21. 26We are subject to environmental liability risk associated with lending activities
22. 27Financial services companies depend on the accuracy and completeness of information about customers and counterparties which, if inaccurate, could have a material adverse impact on our financial condition and results of operations
23. 28We are at risk of having an adverse impact on business due to damage to our reputation
24. 29Changes in card network rules or standards could adversely affect our business

Risks Related to the Legal and Regulatory Environment

1. 30Changes in tax law may adversely affect our performance and create the risk that we may need to adjust our accounting for these changes
2. 31We are subject to extensive government regulation and supervision and possible enforcement and other legal actions that could detrimentally affect our business
3. 32Failure to meet any of the various capital adequacy guidelines which we are subject to could adversely affect our operations and could compromise our status as a financial holding company
4. 33We are a financial holding company and our sources of funds are limited
5. 34The inability of the Bank to generate profits and pay such dividends to us, or regulator restrictions on the payment of such dividends to us even if earned, would have an adverse effect on our financial condition and results of operations and our ability to pay dividends to our shareholders

Risks Related to Our Common Stock

1. 35The trading volume in our common stock is less than that of other larger financial services companies
2. 36If we are unable to maintain compliance with Nasdaq listing requirements, our stock could be delisted, and the trading price, volume and marketability of the stock could be adversely affected
3. 37Stock price volatility may make it more difficult for shareholders to resell their common stock when they want and at prices theyNew
4. 38l geopolitical conditions, such as acts or threats of terrorism or military conflicts, including geopolitical tensions or conflict that may arise as a result of the current U.S. administration39% rewritten
5. 39Our ability to pay dividends is not certain and we may be unable to pay future dividends. As a result, capital appreciation, if any, of our common stock may be shareholders' sole opportunity for gains on their investment for the foreseeable future
6. 40The value of the securities in our investment securities portfolio may be negatively affected by disruptions in securities markets
7. 41Our accounting policies and estimates are critical to how we report our financial condition and results of operations, and any changes to such accounting policies and estimates could materially affect how we report our financial condition and results of operations
8. 42Our accounting estimates and risk management processes rely on analytical and forecasting models which may prove to be inadequate or inaccurate which could result in unexpected losses, insufficient allowances for credit losses or unexpected fluctuations in the value of our financial instruments