MVB FINANCIAL CORP 8-K

What Happened MVB Financial Corp. announced on February 24, 2026 that it entered into a Credit Agreement with Raymond James Bank providing a senior revolving line of credit of up to $20,000,000. The facility is for general corporate purposes, repayment of existing subordinated indebtedness, and payment of transaction costs. The loan matures on the third anniversary of the agreement and may be prepaid without penalty.

Key Details

• Loan amount: up to $20,000,000 (senior revolving line of credit).
• Interest: 2.75% plus monthly‑reset SOFR; applicable rate was 6.43% as of Feb 24, 2026. Accrued interest payable monthly.
• Maturity: three years (terminates on the third anniversary), with customary events of default and a Default Rate that is 2.00% per annum above the normal rate if an event of default occurs.
• Security and covenants: obligations are secured by a pledge of MVB’s equity in certain subsidiaries; contains customary negative covenants (limits on indebtedness, liens, investments, M&A, asset sales, dividends); financial covenants include:
  • Subsidiary banks must be “well capitalized” at all times;
  • Total Risk‑Based Capital Ratio for any subsidiary bank must be ≥ 11.50% each quarter;
  • Loan Loss Reserves to Non‑Performing Loans ratio: ≥ 55% through Q4 2026, then ≥ 70% thereafter;
  • Consolidated Fixed Charge Coverage Ratio must be ≥ 2.00:1.00 on a trailing four‑quarter basis.

Why It Matters This credit line provides MVB with near‑term liquidity to support operations and to refinance subordinated debt, which can strengthen the company’s cash position. However, the facility imposes material financial covenants and collateral requirements that could limit dividends, acquisitions or other capital actions if ratios slip. A covenant breach could trigger acceleration of the loan and a higher interest rate, increasing financial pressure on the company. Investors should watch MVB’s capital ratios, reserve coverage and any future draws on this line for signs of financial flexibility or constraints.