MVB Financial(MVBF) - 2021 Q1 - Quarterly Report

Financial Performance - Net income attributable to the parent for Q1 2021 was $8,085 thousand, compared to $1,048 thousand in Q1 2020, marking a significant increase of 671.5%[13]. - Comprehensive income for Q1 2021 was $3,967 thousand, compared to $131 thousand in Q1 2020, showing a substantial increase[14]. - Net income for the three months ended March 31, 2021, was $8,058,000, compared to $1,048,000 for the same period in 2020, representing a significant increase[16]. - The Company earned $8.1 million in Q1 2021, a significant increase from $1.0 million in Q1 2020, resulting in a return on average assets of 1.3% and a return on average equity of 13.6%[144]. - Basic earnings per share (EPS) for Q1 2021 was $0.70, up from $0.08 in Q1 2020, indicating strong earnings growth[132]. Asset and Deposit Growth - Total assets increased to $2,646,089 thousand as of March 31, 2021, up from $2,331,476 thousand as of December 31, 2020, representing a growth of 13.5%[12]. - Total deposits rose to $2,216,553 thousand as of March 31, 2021, up from $1,982,389 thousand as of December 31, 2020, reflecting an increase of 11.8%[12]. - Total deposits increased by $234,164,000 in Q1 2021, compared to $332,734,000 in Q1 2020, indicating strong customer confidence[16]. - Total cash and cash equivalents at the end of the period increased to $339,616,000 from $88,874,000 year-over-year[16]. - Total deposits amounted to $2,216,553 thousand as of March 31, 2021, with an estimated fair value of $2,196,951 thousand[110]. Income and Expense Analysis - Net interest income for Q1 2021 was $17,505 thousand, compared to $16,171 thousand in Q1 2020, an increase of 8.2%[13]. - Noninterest income for Q1 2021 totaled $12,458 thousand, up from $10,850 thousand in Q1 2020, representing a growth of 14.8%[13]. - Total noninterest expenses decreased to $19,118 thousand in Q1 2021 from $24,656 thousand in Q1 2020, a reduction of 22.5%[13]. - Noninterest expenses decreased to $19.1 million for the three months ended March 31, 2021, down from $24.7 million in the same period in 2020, with personnel costs comprising approximately 62% of total noninterest expenses[175]. - The efficiency ratio improved to 63.8% in Q1 2021 from 91.3% in Q1 2020, indicating better cost management[154]. Loan and Credit Quality - The allowance for loan losses was $26,214 thousand as of March 31, 2021, compared to $25,844 thousand as of December 31, 2020, indicating a slight increase of 1.4%[12]. - The total loans amounted to $1.696 billion, up from $1.455 billion as of December 31, 2020, reflecting a growth of 16.6%[42]. - The total impaired loans as of March 31, 2021, were $13.111 million, compared to $15.394 million as of December 31, 2020, indicating a decrease of 14.8%[51]. - The provision for loan losses decreased to $0.6 million for the three months ended March 31, 2021, compared to $1.1 million for the same period in 2020, reflecting changes in charge-offs and historical loss rates[167]. - The allowance for loan losses (ALL) is based on management's evaluation of risk characteristics and credit quality, with total collectively evaluated impaired loans at $2.0 million as of March 31, 2021[65]. Investment and Securities - The total amortized cost of investment securities available-for-sale was $420.69 million, with a fair value of $423.12 million as of December 31, 2020[33]. - The Company reported unrealized losses of $3.3 million on securities as of March 31, 2021, but maintains the ability to hold these securities until principal recovery[36]. - The fair value of municipal securities held by the Company was $209.734 million as of March 31, 2021, with unrealized losses of $1.008 million[32]. - The Company recognized unrealized holding gains on equity securities of $0.5 million for the three months ended March 31, 2021, compared to immaterial gains in the same period of 2020[39]. - The company reported realized and unrealized gains of $19,000 in earnings related to municipal securities for the period ending March 31, 2021[123]. Capital and Equity - The total equity attributable to the parent decreased slightly to $236,210 thousand as of March 31, 2021, from $239,483 thousand as of December 31, 2020, a decline of 1.0%[12]. - Stockholders' equity decreased by approximately $3.3 million to $236.7 million during the quarter ended March 31, 2021, with a dividend payout ratio dropping from 115.2% to 14.3%[195]. - The Company redeemed all outstanding shares of its preferred stock in January 2021, with a redemption price of $10,000 per share plus unpaid dividends[108]. - The Company has an effective shelf registration covering $75 million of debt and equity securities available for issuance[201]. - The Bank's CBLR at March 31, 2021 was 11.3%, exceeding the well-capitalized standard of 8.5%[198]. Operational Developments - The company acquired an 80% interest in Flexia, which provides a reloadable account combining debit and casino gaming accounts, enhancing its fintech capabilities[21]. - The Bank acquired an 80% interest in Flexia Payments, LLC for approximately $2.5 million in February 2021[138]. - The Bank entered into a Stock Purchase Agreement to acquire a majority interest in Trabian Technology, Inc. in April 2021[139]. - The Company originated 634 PPP loans totaling $88.5 million and an additional $102.1 million through a partnership with a Fintech company as of March 31, 2021[84]. - The Company is involved in various legal actions, but management believes the outcomes will not significantly affect the consolidated financial statements[210].