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Borrowed Funds
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Borrowed Funds
Note 7 – Borrowed Funds

The Bank is a member of the FHLB of Pittsburgh, Pennsylvania. As of December 31, 2024, the Bank's maximum borrowing capacity with the FHLB was $661.4 million and the remaining borrowing capacity was $648.6 million, with the difference being deposit letters of credit of $11.8 million and credit enhancement recourse obligations related to the master commitments through the FHLB's Mortgage Partnership Finance program of $1.0 million.

Additionally, as of December 31, 2024 and December 31, 2023, the Bank had no short-term borrowings through its Federal Funds lines of credits with various other lending institutions, with an aggregate maximum borrowing capacity of $67.0 million.

Short-term borrowings

As of December 31, 2024 and December 31, 2023, the Bank had no short-term borrowings with the FHLB, Federal Reserve Bank or other such lending institutions and no Fed Funds purchased outstanding.
Information related to short-term borrowings is summarized as follows:
(Dollars in thousands)20242023
Balance at end of year$— $— 
Average balance during the year25 17,542 
Maximum month-end balance— — 
Weighted-average rate during the year6.46 %5.07 %
Weighted-average rate at December 31— %— %

Long-term borrowings

As of December 31, 2024 and December 31, 2023, the Bank had no long-term borrowings with the FHLB or the Federal Reserve Bank.

Repurchase agreements

Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase (“repurchase agreements”) with clients representing funds deposited, on an overnight basis, that are collateralized by investment securities owned by us. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between us and the client and are accounted for as secured borrowings. Our repurchase agreements reflected in liabilities consist of client accounts and securities which are pledged on an individual security basis.

We monitor the fair value of the underlying securities on a monthly basis. Repurchase agreements are reflected in the amount of cash received in connection with the transaction. The primary risk with our repurchase agreements is the market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.

At December 31, 2024 and December 31, 2023, all of our repurchase agreements were overnight agreements. These borrowings were collateralized with investment securities with a carrying value of $2.8 million and $4.9 million at December 31, 2024 and December 31, 2023, respectively, and were comprised of United States government agency securities and United States sponsored mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged.

Information related to repurchase agreements is summarized as follows:
(Dollars in thousands)20242023
Balance at end of year$2,759 $4,821 
Average balance during the year3,477 5,662 
Maximum month-end balance4,755 10,041 
Weighted-average rate during the year1.28 %0.02 %
Weighted-average rate at December 311.78 %0.01 %

Subordinated debt

Information related to subordinated debt is summarized as follows:
(Dollars in thousands)20242023
Balance at end of year$73,787 $73,540 
Average balance during the year73,667 73,415 
Maximum month-end balance73,787 73,540 
Weighted-average rate during the year4.04 %4.38 %
Weighted-average rate at December 313.99 %4.02 %

In September 2021, we completed the private placement of $30 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-year term, maturing October 1, 2031, and will bear interest at a fixed rate of 3.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR, plus 254 basis
points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes.

In November 2020, we completed the private placement of $40 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a ten-year term, maturing December 1, 2030, and will bear interest at a fixed rate of 4.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is Three-Month Term SOFR, plus 401 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes.

In March 2007, we completed the private placement of $4.0 million Floating Rate, Trust Preferred Securities through our MVB Financial Statutory Trust I subsidiary (the “Trust”). We established the Trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by us since 2012. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 0.26%, plus Three-Month Term SOFR. The obligations we provide with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by us of the Trust’s obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. The securities issued by the Trust are includable for regulatory purposes as a component of our Tier 1 capital.

We recognized interest expense on our subordinated debt of $3.2 million, $3.2 million and $3.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Senior term loan

Information related to senior term loan is summarized as follows:
(Dollars in thousands)20242023
Balance at end of year$— $6,786 
Average balance during the year2,355 9,007 
Maximum month-end balance6,794 9,768 
Weighted-average rate during the year11.21 %8.50 %
Rate at December 31— %8.76 %

In October 2022, we entered into a credit agreement with Raymond James Bank ("Raymond James"). Pursuant to the credit agreement, Raymond James has extended to us a senior term loan in the aggregate principal amount of up to $10 million. In connection with the closing of the Warp Speed transaction, we borrowed $10 million and paid Raymond James an upfront fee of 1% of the loan amount. The loan will bear interest per annum at a rate equal to 2.75%, plus term SOFR, which will reset monthly. Accrued interest is payable on the last business day of each month, beginning with October 31, 2022, with the then outstanding principal balance of the loan payable on the last business day of each quarter in the amount of $125,000 during the first year and $250,000 thereafter. In May 2024, the senior term loan was repaid.
We recognized interest expense on our senior term loan of $0.3 million, $0.8 million and $0.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.