MVB Financial(US:MVBF)2025-08-07 20:33Financial Performance - Net income attributable to the parent was $2,002 thousand for the three months ended June 30, 2025, a decline of 51.8% from $4,089 thousand in the same period of 2024[17]. - Earnings per common shareholder (basic) decreased to $0.16 for the three months ended June 30, 2025, compared to $0.32 in the same quarter of 2024[17]. - Comprehensive income for the three months ended June 30, 2025, was $252 thousand, significantly lower than $6,502 thousand in the same period of 2024[18]. - Net income for the six months ended June 30, 2025, was $5,561,000, compared to $8,651,000 for the same period in 2024, reflecting a decrease of approximately 35.5%[20]. - The net income available to common shareholders for the three months ended June 30, 2025, was $2.002 million, compared to $4.089 million for the same period in 2024, representing a decline of approximately 51.0%[123]. - Net income for the three months ended June 30, 2025 was $2.0 million, a decrease from $4.1 million for the same period in 2024[140]. Asset and Liability Management - Total assets increased to $3,224,008 thousand as of June 30, 2025, up from $3,128,704 thousand at December 31, 2024, representing a growth of 3.06%[15]. - Total liabilities as of June 30, 2025, were $2,899,096 thousand, down from $3,093,544 thousand in 2024, indicating a reduction in leverage[145]. - Total stockholders' equity increased to $310,054,000 as of March 31, 2025, up from $305,791,000 at the end of 2024, representing a growth of about 0.9%[19]. - The equity to assets ratio decreased from 9.8% at December 31, 2024, to 9.4% at June 30, 2025[197]. - Liquid assets totaled $472.9 million as of June 30, 2025, supporting the Bank's ability to meet cash obligations[202]. Loan Portfolio - Net loans receivable rose to $2,132,524 thousand, an increase of 2.18% from $2,080,468 thousand at the end of 2024[15]. - Total loans amounted to $2,153,396 thousand, an increase of 2.6% from $2,099,117 thousand on December 31, 2024[40]. - Commercial loans totaled $1,485,924 thousand, up 4.9% from $1,416,856 thousand at the end of 2024[40]. - Residential real estate loans decreased to $639,771 thousand, down 1.4% from $650,708 thousand[40]. - The Bank's loan portfolio totaled $2.15 billion as of June 30, 2025, up from $2.10 billion as of December 31, 2024, indicating a growth of approximately 2.4%[181]. Income and Expenses - Net interest income after provision for credit losses was $23,790 thousand for the three months ended June 30, 2025, down 12.5% from $27,316 thousand in the same period of 2024[16]. - Noninterest income totaled $7,945 thousand for the three months ended June 30, 2025, a 11.23% increase from $7,142 thousand in the prior year[16]. - Total noninterest expenses decreased slightly to $28,569 thousand, down from $28,930 thousand in the same quarter of 2024[16]. - Interest income for the three months ended June 30, 2025, was $42,384 thousand, a decrease of 8.8% from $46,127 thousand in the same period of 2024[132]. - Total interest income decreased by $3.7 million, or 8.1%, to $42.4 million for the three months ended June 30, 2025, from $46.1 million for the same period in 2024[155]. Credit Losses and Provisions - The allowance for credit losses increased to $20,785 thousand as of June 30, 2025, compared to $19,663 thousand at December 31, 2024, indicating a proactive approach to potential credit risks[15]. - The provision for credit losses for the three months ended June 30, 2025, was $2,031,000, compared to a release of $1,803,000 for the same period in 2024[73]. - Charge-offs for the six months ended June 30, 2025, totaled $2,000,000, with $1,000,000 related to commercial notes secured by business assets and $1,000,000 related to the subprime automotive segment[74]. - The total allowance for credit losses (ACL) was $20,785,000, an increase from $19,165,000 at March 31, 2025[73]. - The ACL methodology includes a discounted cash flow approach with a one-year reasonable forecast period[64]. Deposits and Funding - Total deposits grew to $2,804,423 thousand, reflecting an increase of 4.12% compared to $2,693,615 thousand at December 31, 2024[15]. - The company experienced a net change in deposits of $109,606,000 during the six months ended June 30, 2025, contrasting with a decrease of $18,624,000 in the same period of 2024[20]. - Fintech deposits rose to $1.16 billion as of June 30, 2025, up from $964.1 million at December 31, 2024, driven by increases in banking-as-a-service and digital asset deposits[188]. Investments and Securities - As of June 30, 2025, the fair value of available-for-sale investment securities was $396.6 million, down from $410.9 million as of December 31, 2024, reflecting a decrease of approximately 3.4%[35]. - The company reported unrealized losses of $34.4 million on available-for-sale debt securities as of June 30, 2025, with no intent to sell these securities at such fair values[38]. - The total amortized cost of available-for-sale debt securities was $430.5 million as of June 30, 2025, with a fair value of $396.6 million, indicating a loss of approximately 7.9%[35]. - The carrying value of the investment in ICM was $24.1 million as of June 30, 2025[85]. - The carrying value of the investment in Warp Speed was $55.8 million as of June 30, 2025[86]. Operational Efficiency - The efficiency ratio for the six months ended June 30, 2025, was 85.0%, compared to 81.3% in 2024, indicating a deterioration in operational efficiency[147]. - Noninterest expense was $28.6 million for the three months ended June 30, 2025, a slight decrease from $28.9 million for the same period in 2024, with personnel costs comprising approximately 55.3% of total noninterest expense[170]. Market and Economic Conditions - The unemployment rate in the United States was 4.4% for June 2025, reflecting the economic conditions in the Bank's primary market areas[206]. - As of June 30, 2025, the Bank expects potential economic volatility over the next one to two years, impacting credit loss rates[65].