MVB Financial(US:MVBF)2022-11-08 21:37Financial Performance - Net income attributable to the parent for the three months ended September 30, 2022, was $2,718 thousand, a decrease of 77.0% from $11,828 thousand in the same period of 2021[16]. - Basic earnings per share (EPS) for the three months ended September 30, 2022, was $0.22, a decrease from $1.00 in the same period of 2021, reflecting a decline of 78.0%[16]. - The company reported a comprehensive loss of $7,839 thousand for the three months ended September 30, 2022, compared to a comprehensive income of $11,014 thousand in the same period of 2021[18]. - The company reported a net loss of $1,698,000 from Edge Ventures for the three months ended September 30, 2022, compared to a net loss of $1,677,000 in the same period of 2021, indicating a slight increase in losses[150]. - Total net income available to common shareholders for the three months ended September 30, 2022, was $2,718 thousand, compared to $11,828 thousand for the same period in 2021[145]. - Total net income available to common shareholders for the three months ended September 30, 2022, was $8,033,000, a decrease from $13,563,000 in the same period of 2021, reflecting a decline of 40.9%[150]. Asset and Liability Management - Total assets increased to $3,139,922 thousand as of September 30, 2022, up from $2,792,449 thousand at December 31, 2021, representing a growth of 12.4%[14]. - Total liabilities rose to $2,895,562 thousand as of September 30, 2022, compared to $2,517,146 thousand at December 31, 2021, marking an increase of 15.0%[14]. - The allowance for loan losses increased to $26,515 thousand as of September 30, 2022, from $18,266 thousand at December 31, 2021, indicating a higher reserve for potential loan defaults[14]. - The total loan portfolio amounted to $2,470,438 thousand, with non-accrual loans totaling $22,350 thousand[75]. - The total loans categorized as "Pass" rated were $2,386,206,000 as of September 30, 2022, compared to $1,770,237,000 at the end of 2021, showing a 34.6% increase[72]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2022, was $29,846 thousand, a 56.2% increase compared to $19,096 thousand for the same period in 2021[15]. - Noninterest income decreased to $8,191 thousand for the three months ended September 30, 2022, down from $21,951 thousand in the same period of 2021, a decline of 62.7%[15]. - Total noninterest expenses for the three months ended September 30, 2022, were $29,965,000, an increase from $25,829,000 in the same period of 2021, reflecting a rise of 16.5%[150]. - The company reported a net amortization and accretion of investments of $2,020,000 in 2022, down from $3,011,000 in 2021[25]. - The total charge-offs for the nine months ended September 30, 2022, were $7,304 thousand, primarily related to the subprime consumer automobile loan portfolio[85]. Loan Performance and Risk Assessment - Provision for loan losses was $5,120 thousand for the three months ended September 30, 2022, compared to $380 thousand in the same period of 2021, indicating a significant increase in risk assessment[15]. - The total criticized loans (Special Mention, Substandard, and Doubtful) amounted to $78,232,000 as of September 30, 2022, compared to $63,864,000 at the end of 2021, marking a 22.4% increase[72]. - The average recorded investment in impaired loans for the three months ended September 30, 2022, was $23,711,000, compared to $17,819,000 for the same period in 2021, indicating a 33.1% increase[62]. - Troubled debt restructured loans totaled $12.2 million as of September 30, 2022, with accruing loans representing 16% of total impaired loans[88]. - The allowance for loan losses (ALL) balance increased to $26,515 thousand as of September 30, 2022, from $18,266 thousand at December 31, 2021[85]. Market and Economic Conditions - Future outlook remains cautious amid market fluctuations and economic uncertainties[21]. - The impact of the COVID-19 pandemic continues to pose uncertainties for future operating results[40]. - The Federal Reserve raised its key interest rate to a range of 3.00% to 3.25% as of September 30, 2022, impacting the bank's interest income strategy[183]. - Management identified additional qualitative factors that may affect estimated credit losses, including lending policies and economic conditions[80]. - The company expects to enhance core deposits and fee income through the expansion of treasury services for Fintech and emerging technology companies[159]. Capital and Equity Management - Total stockholders' equity as of March 31, 2022, was $263.862 million, a decrease from $275.303 million at the end of 2021, representing a decline of about 4.2%[20]. - Tangible book value per common share decreased to $19.38 as of September 30, 2022, from $21.64 in 2021, a decline of 10.5%[179]. - The company completed the acquisition of 37.5% equity interest in Warp Speed Holdings for $38.4 million in cash and shares valued at $9.6 million[154][165]. - A merger agreement was entered into with Integrated Financial Holdings, Inc., where IFH shareholders will receive 1.21 shares of MVB common stock for each share of IFH common stock[153][167]. - The balance of recurring Level III assets, consisting solely of municipal securities, was $35,129,000 as of September 30, 2022, down from $41,763,000 at December 31, 2021[135].