MVB Financial(MVBF) - 2021 Q2 - Quarterly Report

Financial Performance - Net income attributable to the parent for Q2 2021 was $9,247 thousand, a decrease of 48.6% from $17,919 thousand in Q2 2020[17]. - Earnings per common share (basic) decreased to $0.79 in Q2 2021 from $1.50 in Q2 2020, a decline of 47.3%[17]. - Comprehensive income for Q2 2021 was $11,138 thousand, compared to $18,079 thousand in Q2 2020, reflecting a decrease of 38.5%[19]. - Net income for the first quarter of 2021 was $9,247,000, an increase from $8,085,000 in the previous quarter[21]. - Net income for the six months ended June 30, 2021, was $17.3 million, down from $19.1 million in the same period of 2020[167]. - The net income for the three months ended June 30, 2021, was $9,247,000, compared to $18,034,000 for the same period in 2020, indicating a decline of approximately 48.7%[146]. Asset and Liability Management - Total assets increased to $2,734,540 thousand as of June 30, 2021, up from $2,331,476 thousand at December 31, 2020, representing a growth of 17.3%[16]. - Total liabilities increased to $2,485,140 thousand as of June 30, 2021, up from $2,091,993 thousand at December 31, 2020, an increase of 18.8%[16]. - Total stockholders' equity increased to $236,210,000 as of March 31, 2021, compared to $239,483,000 at the end of 2020[21]. - The carrying value of cash and cash equivalents was $332,771,000, with an estimated fair value also at $332,771,000[124]. - The total financial liabilities reported as of June 30, 2021, were $2,229,175,000, with an estimated fair value of $2,186,598,000, reflecting a decrease of about 1.9%[124]. Loan and Credit Quality - The allowance for loan losses decreased to $24,882 thousand as of June 30, 2021, from $25,844 thousand at December 31, 2020, indicating improved asset quality[16]. - The provision for loan losses for the six months ended June 30, 2021, was a release of $1,450,000, compared to a provision of $6,423,000 for the same period in 2020[86]. - The total amount of criticized loans (Special Mention, Substandard, and Doubtful) was $60,514,000 as of June 30, 2021, compared to $58,270,000 as of December 31, 2020, showing an increase of about 3.8%[72]. - The total loans as of June 30, 2021, were $1.699871 billion, an increase from $1.454801 billion as of December 31, 2020[52]. - The total allowance for loan losses (ALL) was $24,882,000, down from $26,124,000 at March 31, 2021, reflecting a decrease of 4.7%[85]. Income and Expense Analysis - Net interest income after provision for loan losses was $20,595 thousand for Q2 2021, compared to $11,862 thousand in Q2 2020, reflecting a significant increase of 73.8%[17]. - Noninterest income for the six months ended June 30, 2021, was $26,102 thousand, down 53.7% from $56,363 thousand in the same period of 2020[17]. - Total noninterest expenses for the three months ended June 30, 2021, were $23,403,000, compared to $33,333,000 for the same period in 2020, indicating a decrease of approximately 29.8%[152]. - The overall cost of interest-bearing liabilities decreased to 0.47% in the six months ended June 30, 2021, from 1.12% in the same period of 2020[166]. - The yield on earning assets (tax-equivalent) was 3.54% for the six months ended June 30, 2021, compared to 4.57% for the same period in 2020[166]. Investment and Securities - The fair value of available-for-sale investment securities was $450,772,000, with $411,002,000 classified under Level II inputs[124]. - The Company reported sales of available-for-sale securities of $34.279 million for the three months ended June 30, 2021, compared to $30.860 million for the same period in 2020, resulting in gross gains of $1.708 million[49]. - The amortized cost of total debt securities was $435.889 million as of June 30, 2021, with a fair value of $439.843 million[45]. - The Company has no intention of selling securities at a loss, despite an unrealized loss position of $2.4 million as of June 30, 2021[47]. - The total balance of recurring Level III assets was $39,770,000, down from $43,679,000 at December 31, 2020, representing a decrease of approximately 9.2%[136]. Strategic Initiatives and Acquisitions - The company acquired majority interests in Flexia and Trabian, consolidating 100% of their financials despite owning only 80%[33]. - Edge Ventures was established to oversee and support MVB's Fintech companies, indicating a focus on innovation and technology[29]. - The Bank acquired an 80% interest in Flexia Payments, LLC for approximately $2.5 million in February 2021[156]. - The Bank invested approximately $1.6 million to acquire an 80% interest in Trabian Technology, Inc. in April 2021[157]. - The Company is expanding its treasury services to support financial and emerging technology companies, enhancing core deposits and fee income strategies[162].