MVB Financial(US:MVBF)2022-08-08 21:02Financial Performance - Net income attributable to the parent for the three months ended June 30, 2022, was $2,956 thousand, a decrease of 68.0% from $9,247 thousand in the same period of 2021[15]. - Earnings per common share (basic) for the three months ended June 30, 2022, was $0.24, down from $0.79 in the same period of 2021, a decline of 69.6%[15]. - Comprehensive loss for the three months ended June 30, 2022, was $(9,302) thousand, compared to comprehensive income of $11,138 thousand in the same period of 2021[16]. - The net income for the quarter was $2,956,000, compared to $2,864,000 in the prior period, indicating a growth of approximately 3.2%[17]. - The company reported a comprehensive loss of $12,258,000 for the quarter, which is a significant increase from the previous comprehensive loss of $13,556,000[17]. - Net income for the six months ended June 30, 2022, was $5,462,000, compared to $17,221,000 for the same period in 2021, reflecting a decrease of 68.3%[20]. - The company reported a net income of $5.8 million for the six months ended June 30, 2022, down from $17.3 million in the same period of 2021[161]. - Total net income available to common shareholders for the three months ended June 30, 2022, was $2,956,000, compared to $9,247,000 for the same period in 2021, indicating a decrease of about 68%[151]. Asset and Equity Growth - Total assets increased to $2,984,428 thousand as of June 30, 2022, up from $2,792,449 thousand at December 31, 2021, representing a growth of 6.9%[14]. - As of June 30, 2022, total stockholders' equity amounted to $252,910,000, reflecting a decrease from the previous balance[17]. - The total additional paid-in capital increased to $145,480,000 as of June 30, 2022, up from $143,521,000 at the end of the previous year[17]. - Total stockholders' equity rose to $255.2 million as of June 30, 2022, compared to $238.7 million in 2021, marking a 6.9% increase[168]. Loan and Deposit Activity - Total loans increased to $2.214 billion as of June 30, 2022, from $1.871 billion at December 31, 2021, representing a growth of approximately 18.3%[48]. - Total deposits increased to $2,614,970 thousand as of June 30, 2022, up from $2,377,605 thousand at December 31, 2021, representing a growth of 10.0%[14]. - The net increase in deposits for the six months ended June 30, 2022, was $237,365,000, compared to $412,486,000 in 2021, showing a decline of 42.4%[20]. - The commercial loan segment totaled $1.640 billion as of June 30, 2022, up from $1.481 billion at December 31, 2021, indicating an increase of about 10.8%[48]. - The allowance for loan losses increased to $22,734 thousand as of June 30, 2022, compared to $18,266 thousand at December 31, 2021, an increase of 24.5%[14]. Income and Expense Analysis - Net interest income for the three months ended June 30, 2022, was $26,660 thousand, a 40.0% increase from $19,055 thousand in the same period of 2021[15]. - Total noninterest expenses increased to $29,819 thousand for the three months ended June 30, 2022, compared to $23,403 thousand in the same period of 2021, an increase of 27.5%[15]. - Noninterest income decreased to $11,909 thousand for the three months ended June 30, 2022, down from $13,644 thousand in the same period of 2021, a decline of 12.7%[15]. - The net interest margin (tax-equivalent) improved to 3.63% for the six months ended June 30, 2022, compared to 3.25% for the same period in 2021[160]. - Noninterest expenses increased by $16.2 million during the six months ended June 30, 2022, compared to the same period in 2021[160]. Investment and Securities - The total investment securities available-for-sale amounted to $376.737 million, with an amortized cost of $411.774 million[42]. - The company reported a pretax loss of $40.4 million on securities if sold at fair value as of June 30, 2022, but intends to hold these securities until recovery[44]. - Investment securities totaled $411.0 million at June 30, 2022, compared to $453.9 million at December 31, 2021[208]. - The fair value of available-for-sale investment securities was $376,737,000, with $339,702,000 classified as Level II and $37,035,000 as Level III[125]. Loan Quality and Risk Management - The provision for loan losses was $5,100 thousand for the three months ended June 30, 2022, compared to a release of $1,540 thousand in the same period of 2021[15]. - The total past due loans increased from $12,010,000 as of December 31, 2021, to $15,675,000 as of June 30, 2022, indicating a rise of approximately 30.5%[72]. - Nonperforming loans increased to $19.3 million as of June 30, 2022, from $15.5 million as of June 30, 2021[171]. - The allowance for loan losses (ALL) balance increased to $22,734,000 as of June 30, 2022, up from $17,603,000 at December 31, 2021, indicating a rise of approximately 29.5%[82]. Future Outlook and Strategic Initiatives - The company is in the process of implementing a new expected credit loss methodology, which may increase the allowance for loan losses starting January 1, 2023[36]. - The company plans to adopt ASU 2016-13 for fiscal years ending after December 15, 2022, which may significantly influence the allowance for loan losses[36]. - The company anticipates continued expansion in its SBA lending focus, which is currently included within the commercial loan types[51]. - The company is expanding its treasury services function to support banking needs in the financial and emerging technology sectors[157].