MVB Financial(MVBF) - 2024 Q3 - Quarterly Report

Financial Performance - Total stockholders' equity increased to $303,200 million as of December 31, 2023, compared to $289,342 million in the previous period[12] - Retained earnings rose to $164,978 million from $160,862 million year-over-year[12] - Total liabilities and stockholders' equity reached $3,418,756 million, up from $3,313,882 million[12] - Net income from continuing operations was $2,156 million, down 44.3% from $3,872 million in the same quarter last year[15] - Earnings per share from continuing operations (basic) was $0.16, compared to $0.30 in the prior year, reflecting a decline of 46.7%[15] - Comprehensive income for the three months ended September 30, 2023, was $8,007 million, compared to a loss of $1,920 million in the prior year[17] - Net income for the quarter ended March 31, 2024, was $4.48 million, compared to $4.09 million for the previous quarter, representing an increase of about 9.0%[19] - The company reported a net income of $2.08 million for the quarter ended June 30, 2024, a decrease from $4.48 million in the previous quarter, indicating a decline of about 53.5%[19] - The company reported net income of $3.87 million for the quarter ended September 30, 2024, compared to $2.08 million for the previous quarter, representing an increase of about 86.5%[19] - Net income available to common shareholders for the nine months ended September 30, 2024, was $10,651 million, down from $23,321 million for the same period in 2023, indicating a decline of about 54.3%[183] Income and Expenses - Total interest income for the three months ended September 30, 2023, was $46,627 million, a decrease of 3.5% from $48,325 million in the same period last year[14] - Net interest income after provision for credit losses decreased to $25,626 million from $30,024 million, reflecting a decline of 14.8% year-over-year[14] - Noninterest income increased to $6,657 million for the three months ended September 30, 2023, compared to $5,791 million in the prior year, representing a growth of 15%[14] - Total noninterest expenses decreased slightly to $29,485 million from $30,725 million, a reduction of 4.0% year-over-year[14] - Provision for credit losses was $959 million, compared to a release of allowance of $(159) million in the same quarter last year[14] - The provision for credit losses for the nine months ended September 30, 2024, was $3,210, compared to $182 in the same period of 2023, indicating a significant increase[181] Equity and Stock Performance - The company declared dividends on common stock at $0.17 per share, totaling $2.145 million for the quarter ended March 31, 2024[19] - As of March 31, 2024, total stockholders' equity attributable to the parent increased to $291.85 million, up from $289.38 million at December 31, 2023, reflecting a growth of approximately 0.57%[19] - Total stockholders' equity at June 30, 2024, reached $296.63 million, an increase of approximately 1.3% from $291.85 million at March 31, 2024[19] - As of September 30, 2024, total stockholders' equity increased to $303.09 million, up from $296.63 million at June 30, 2024, reflecting a growth of approximately 2.2%[19] - The weighted-average shares outstanding (basic) increased to 12,927,962 from 12,722,010 year-over-year[15] - Basic earnings per share from continuing operations for the three months ended September 30, 2024, was $0.16, compared to $0.30 for the same period in 2023, reflecting a decrease of approximately 46.7%[170] Loans and Credit Quality - Total loans decreased from $2,316,174 thousand as of December 31, 2023, to $2,169,947 thousand as of September 30, 2024, representing a decline of approximately 6.3%[55] - Commercial business loans decreased from $797,100 thousand to $701,974 thousand, a reduction of about 11.9%[55] - The bank employs a nine-point internal risk rating system to monitor credit quality, with "Pass" rated loans indicating adequate repayment sources[63][64] - The gross charge-offs for commercial business loans were $2.292 million, with a notable increase from $367,000 in the prior year[70] - The total amount of gross charge-offs across all categories reached $5,080 thousand in 2023, compared to $2,953 thousand in 2022, indicating a rising trend in charge-offs[73] - The allowance for credit losses (ACL) was calculated using a discounted cash flow methodology, reflecting expected credit losses based on historical data and economic forecasts[83] Market and Economic Outlook - The company anticipates continued growth in user data and market expansion strategies in the upcoming quarters[4] - Future performance may be impacted by interest rate fluctuations and evolving regulatory environments in the fintech sector[5] - The company expects economic improvements in its operating markets over the next one to two years, which may positively impact loan performance[84] - The company is focused on managing credit risk and ensuring sufficient allowance for credit losses amid economic uncertainties[5] Regulatory and Compliance - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements[45] - The amendments from ASU 2023-09 will require additional disclosures regarding the effective tax rate reconciliation starting from fiscal years beginning after December 15, 2024[43] - The company does not expect the amendments from ASU 2024-01 to have a material impact on its consolidated financial statements[44]