MVB Financial(MVBF) - 2022 Q1 - Quarterly Report

Financial Performance - Net income attributable to the parent for Q1 2022 was $2,864 thousand, a decrease of 64.5% from $8,085 thousand in Q1 2021[15]. - Net income for Q1 2022 was $2.671 million, a decrease of 66.8% compared to $8.058 million in Q1 2021[20]. - The company reported a comprehensive loss of $10,692 thousand for Q1 2022, compared to a comprehensive income of $3,967 thousand in Q1 2021[16]. - Basic earnings per share (EPS) for Q1 2022 was $0.24, down 65.7% from $0.70 in Q1 2021; diluted EPS was $0.22, down 66.7% from $0.66[137]. - Return on average assets decreased to 0.4% for the three months ended March 31, 2022, down from 1.3% in the same period in 2021, attributed to a $5.2 million decrease in earnings[180]. - Return on average stockholders' equity decreased to 4.2% for the three months ended March 31, 2022, compared to 13.6% in the same period in 2021, due to a $5.2 million decrease in earnings[181]. Asset and Deposit Growth - Total assets increased to $2,893,464 thousand as of March 31, 2022, up from $2,792,449 thousand at December 31, 2021, representing a growth of 3.6%[14]. - Total deposits rose to $2,509,079 thousand as of March 31, 2022, compared to $2,377,605 thousand at December 31, 2021, marking an increase of 5.5%[14]. - Noninterest-bearing demand deposits rose to $1,308,998 thousand as of March 31, 2022, compared to $1,120,433 thousand at December 31, 2021, marking an increase of about 16.8%[102]. - Fintech deposits increased from $1.14 billion at December 31, 2021, to $1.25 billion as of March 31, 2022, driven by growth in gaming deposits, which rose to $970.4 million from $911.6 million[191]. Loan Performance - Total loans as of March 31, 2022, amounted to $1,882 billion, an increase from $1.661 billion at March 31, 2021[79]. - The total commercial loans stood at $1,481,407 thousand as of March 31, 2022, slightly up from $1,480,527 thousand at the end of 2021[46]. - The total past due loans as of March 31, 2022, amounted to $10.704 million, with $5.887 million classified as 90+ days past due[69]. - Nonperforming loans increased to $18,048 thousand in Q1 2022, compared to $11,577 thousand in Q1 2021, representing a rise in nonperforming loans to total loans receivable ratio to 1.0%[158]. - The total impaired loans as of March 31, 2022, were $22,526 thousand, compared to $22,455 thousand as of December 31, 2021, showing a slight increase[55]. Income and Expense Analysis - Net interest income for the three months ended March 31, 2022, was $21,848 thousand, an increase of 24.5% compared to $17,505 thousand for the same period in 2021[15]. - Total noninterest income for Q1 2022 was $11,870 thousand, a decrease of 4.7% from $12,458 thousand in Q1 2021[15]. - Noninterest expenses increased to $28,862 thousand in Q1 2022, up 50.9% from $19,118 thousand in Q1 2021[15]. - The efficiency ratio worsened to 85.6% in Q1 2022 from 63.8% in Q1 2021[158]. Loan Loss Provisions - The provision for loan losses was $1,280 thousand for Q1 2022, compared to $618 thousand in Q1 2021, indicating a significant increase of 106.5%[15]. - The allowance for loan losses increased to $18,808 thousand as of March 31, 2022, from $18,266 thousand at December 31, 2021, indicating a rise of 2.9%[14]. - The allowance for loan losses (ALL) balance at March 31, 2022, was $18.194 million, down from $17.603 million at December 31, 2021[78]. Investment and Securities - As of March 31, 2022, the total amortized cost of investment securities available-for-sale was $413.3 million, with a fair value of $395.3 million, reflecting an unrealized loss of $19.8 million[40]. - The fair value of available-for-sale investment securities was $395,301,000, with $355,633,000 classified as Level II and $39,668,000 as Level III[127]. - The company does not expect to sustain any material realized losses from the current decline in fair value of securities, which are considered temporarily impaired[43]. Capital and Equity - The company’s total stockholders' equity at the end of Q1 2022 was $263.862 million, a decrease from $275.303 million at the end of Q1 2021[20]. - Stockholders' equity decreased by $11.4 million to $263.9 million during the three months ended March 31, 2022, primarily due to a $13.6 million comprehensive loss[194]. - The equity to assets ratio declined from 9.8% at December 31, 2021, to 9.1% at March 31, 2022, as assets grew by $101.0 million[195]. Operational Insights - The company is expanding its treasury services to support financial and emerging technology companies, enhancing core deposits and fee income strategies[146]. - The company continues to invest in infrastructure to support future growth, focusing on margin improvement and operating efficiency[146]. - The Bank has an effective shelf registration covering $75 million of debt and equity securities available for issuance[202].