MVB FINANCIAL CORPMVBF

MVB FINANCIAL CORP Income Taxes Disclosure

10-KFiled Mar 12, 20263 min read
Note 9 – Income Taxes

The components of income tax expense are as follows for the years ended December 31,:
(Dollars in thousands)202520242023
Income, before income tax expense (benefit)
United States$36,850 $26,344 $39,125 
Income tax expense (benefit)
Current:
Federal$8,674 $3,438 $6,707 
State1,644 465 1,315 
Total current tax expense$10,318 $3,903 $8,022 
Deferred:   
Federal$(414)$1,873 $8 
State24 323 89 
Total deferred tax (benefit) expense(390)2,196 97 
Total income taxes
Federal8,260 $5,311 $6,715 
State1,668 788 1,404 
Total income taxes$9,928 $6,099 $8,119 
There was no income from foreign countries for the years ended December 31, 2025, 2024, and 2023.

The following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31:
202520242023
(Dollars in thousands)Amount%  Amount%  Amount%  
Income tax at federal statutory rate$7,738 21.0 %$5,532 21.0 %$8,217 21.0 %
Tax effect of:
State income taxes, net of federal income taxes1,322 3.6 %623 2.4 %1,109 2.8 %
Tax credits
Research and development tax credit— — %(456)(1.7)%— — %
Investment tax credits(1,678)(4.5)%— — %— — %
Other tax credits80 0.2 %— — %— — %
Nontaxable or nondeductible items
Nontaxable income:
Interest on municipal securities(517)(1.4)%(540)(2.0)%(706)(1.8)%
Income on bank-owned life insurance(318)(0.9)%(245)(0.9)%(220)(0.6)%
Other nontaxable income— — %(23)(0.1)%(27)(0.1)%
Nondeductible expenses:
Municipal bond interest expense302 0.8 %406 1.4 %103 0.3 %
Public relations expense415 1.1 %254 1.0 %335 0.9 %
Executive compensation expense1,561 4.2 %227 0.9 %298 0.8 %
Other nondeductible expenses474 1.3 %149 0.6 %209 0.5 %
Other549 1.5 %172 0.6 %(1,199)(3.0)%
$9,928 26.9 %$6,099 23.2 %$8,119 20.8 %

There were no domestic federal reconciling items related to the effect of cross-border tax laws, changes in tax laws or rates enacted in the current period, changes in valuation allowance, foreign tax effects, and changes in unrecognized tax benefits.

The components of income taxes paid, net of refunds, are as follows for the years ended December 31:
(Dollars in thousands)202520242023
Federal$16,192 $— $10,910 
State1,310 924 2,172 
Total$17,502 $924 $13,082 
Income taxes paid exceeded five percent of total income taxes paid in the following jurisdictions:
State
California*$121 *
Florida*171 *
Maryland*94 *
North Carolina*112 *
Pennsylvania*103 *
* Jurisdiction below the threshold for the period presented

Deferred income tax assets and liabilities were comprised of the following as of December 31:
(Dollars in thousands)20252024
Gross deferred tax assets:
Allowance for credit losses$5,286 $5,118 
Minimum pension liability654 734 
Research and development— 1,126 
Stock-based compensation924 903 
Supplemental executive retirement plan— 401 
Unrealized loss on securities available-for-sale3,553 7,958 
Lease liabilities6,341 6,772 
Depreciation817 329 
Other978 660 
     Total gross deferred tax assets18,553 24,001 
Gross deferred tax liabilities:
Pension(1,113)(1,086)
Holding gain on equity securities(4,243)(4,247)
Equity method investment(2,119)(2,061)
Goodwill(107)(88)
Right-of-use assets(6,003)(6,479)
Other(1,836)(2,697)
     Total gross deferred tax liabilities(15,421)(16,658)
     Net deferred tax assets $3,132 $7,343 

Net deferred income tax assets are included in accrued interest and other assets. The Company has no unrecognized tax benefits, nor pending examination issues related to tax positions taken in preparation of its income tax returns. With limited exceptions, the Company is no longer subject to examination by the Internal Revenue Service for years prior to 2022.
In December 2025, the Company purchased approximately $14.2 million of Investment Tax Credits ("ITCs") related to two projects that involve anaerobic digesters that qualify as “qualified biogas properties” under Section 48 of the Internal Revenue Code of 1986. The Company paid $12.5 million for the ITCs, reducing its 2025 income tax liability by approximately $1.7 million. The Company accounted for the purchased ITCs in accordance with guidance included in ASC 740, Income Taxes.
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Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 13, 2025
2023Mar 13, 2024
2022Mar 16, 2023
2021Mar 10, 2022
2020Mar 9, 2021
2019Mar 13, 2020
2018Mar 8, 2019
2017Mar 8, 2018
2016Mar 10, 2017
2015Mar 9, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

Other Available Disclosures

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