MVB Financial(MVBF) - 2020 Q3 - Quarterly Report

Financial Performance - Net income from continuing operations for the nine months ended September 30, 2020, was $25,573 thousand, compared to $22,469 thousand for the same period in 2019, marking an increase of approximately 9.4%[8] - Earnings per share from continuing operations increased to $2.11 for the nine months ended September 30, 2020, compared to $1.89 for the same period in 2019, representing a growth of about 11.6%[9] - Comprehensive income for the nine months ended September 30, 2020, was $25,642 thousand, compared to $27,560 thousand in 2019, showing a decrease of about 6.9%[11] - Net income for the nine months ended September 30, 2020, was $25,573,000, an increase from $22,896,000 in the same period of 2019, representing an increase of approximately 11.6%[17] - The Company reported total revenues of $62,915,000 and net income of $28,979,000 for the three months ended September 30, 2020, with gross profit also at $33,765,000[107] - For the three months ended September 30, 2020, net income was $6,491 thousand, compared to $4,327 thousand for the same period in 2019, representing a year-over-year increase of approximately 50%[148] Asset Growth - Total assets increased to $2,214,459 thousand as of September 30, 2020, up from $1,944,114 thousand at December 31, 2019, representing a growth of approximately 13.9%[6] - Total deposits rose to $1,898,957 thousand as of September 30, 2020, compared to $1,265,042 thousand at December 31, 2019, representing an increase of approximately 50%[6] - The total stockholders' equity increased to $234,116,000 as of September 30, 2020, compared to $211,936,000 at the end of 2019, representing a growth of approximately 10.5%[14] - Cash and cash equivalents at the end of the period reached $295,823,000, a significant increase from $36,568,000 at the end of the same period in 2019[17] Loan and Deposit Activity - Net loans reached $1,402,680 thousand, an increase from $1,362,766 thousand, reflecting a growth of about 2.9%[6] - Total loans increased to $1,430.3 million as of September 30, 2020, compared to $1,374.2 million at December 31, 2019, reflecting a growth of 4.1%[51] - The company reported a net increase in deposits of $491,259,000 for the nine months ended September 30, 2020, compared to $147,250,000 in the same period of 2019, indicating strong deposit growth[17] Noninterest Income - Total noninterest income for the nine months ended September 30, 2020, was $75,761 thousand, up from $49,848 thousand in 2019, indicating a significant increase of approximately 52.1%[8] - Noninterest income for the nine months ended September 30, 2020, totaled $75.76 million, a significant increase from $49.85 million in the same period of 2019, marking a 52% growth[186] - Compliance consulting income surged to $3.04 million for the nine months ended September 30, 2020, compared to only $25 thousand in the same period of 2019, indicating a substantial increase[186] Loan Loss Provisions - Provision for loan losses was $16,365 thousand for the nine months ended September 30, 2020, compared to $1,557 thousand in 2019, reflecting a substantial increase due to economic uncertainties[8] - The provision for loan losses increased significantly to $16,365,000 for the nine months ended September 30, 2020, compared to $1,557,000 for the same period in 2019, indicating a substantial rise in expected credit losses[17] - Provision for loan losses for the three months ended September 30, 2020, was $8,631 thousand, compared to $657 thousand for the same period in 2019, reflecting a significant increase due to economic uncertainties[148] Investment Activity - The company incurred a net cash used in investing activities of $(154,717,000) for the nine months ended September 30, 2020, compared to $(74,566,000) in 2019, reflecting increased investment activity[17] - The investment securities available-for-sale totaled $297.964 million at September 30, 2020, with unrealized losses of $694 thousand[44] - The company sold investments available-for-sale worth $48.6 million for the nine-month period ended September 30, 2020, resulting in gross gains of $899 thousand[47] Credit Quality and Impairment - The total allowance for loan losses (ALL) was $25.816 million, an increase from $17.569 million as of June 30, 2020, reflecting a provision of $16.257 million during the quarter[63] - The total recorded investment in impaired loans as of September 30, 2020, was $17.5 million, with $10.5 million classified with specific allowance and $6.99 million without[75] - Impaired loans increased by $8.0 million, or 84.6%, during the nine months ended September 30, 2020, reaching a total of $17.5 million[75] Acquisitions and Mergers - The company completed the combination of MVB Mortgage with Intercoastal Mortgage Company on July 1, 2020, enhancing its position in the Mid-Atlantic residential mortgage lending market[147] - The acquisition of First State Bank on April 3, 2020, involved a net asset discount of $33.2 million and the acquisition of deposits valued at approximately $140 million[192] - A bargain purchase gain of $4.671 million was recognized on the First State acquisition[198] Miscellaneous - The company is actively evaluating the impact of COVID-19 on its financial condition and results of operations, with potential material effects[32] - The company recognized unrealized holding gains on equity securities of $94 thousand for the three-month period ended September 30, 2020[49] - The company reported a significant increase in mortgage fee income to $33,427 thousand for the nine months ended September 30, 2020, compared to $28,030 thousand in 2019, representing a growth of about 19.5%[8]