MVB Financial(US:MVBF)2021-11-01 20:37Financial Performance - Net income attributable to the parent for the three months ended September 30, 2021, was $11,828 thousand, compared to $6,491 thousand for the same period in 2020, reflecting an increase of 82.5%[15] - Comprehensive income for the three months ended September 30, 2021, was $11,014 thousand, compared to $7,432 thousand for the same period in 2020, an increase of 48.0%[17] - Net income for the quarter ended June 30, 2021, was $9,247,000, representing an increase from the previous quarter[19] - The company reported a net income of $11,828,000 for the quarter ended September 30, 2021[20] - Net income for the nine months ended September 30, 2021, was $28,895,000, compared to $25,573,000 for the same period in 2020, representing an increase of 9.1%[22] - Earnings for the nine months ended September 30, 2021, were $29.2 million, up from $25.6 million for the same period in 2020, representing a growth of 14%[164] - Basic earnings per share increased to $2.49 for the nine months ended September 30, 2021, compared to $2.11 in 2020, reflecting a growth of 18%[165] Assets and Liabilities - Total assets increased to $2,788,824 thousand as of September 30, 2021, up from $2,331,476 thousand at December 31, 2020, representing a growth of 19.6%[14] - Total liabilities increased to $2,522,124 thousand as of September 30, 2021, from $2,091,993 thousand at December 31, 2020, reflecting a growth of 20.6%[14] - Total stockholders' equity as of September 30, 2021, increased to $266,700,000 from $248,611,000 at the end of June 2021[20] - Cash and cash equivalents at the end of the period increased to $390,081,000 from $295,823,000, marking a rise of 31.9%[24] - The carrying value of loans receivable, net, was $1.739 billion as of September 30, 2021, up from $1.428 billion at the end of 2020, marking a 21.7% increase[123] Deposits and Loans - Total deposits rose to $2,398,940 thousand as of September 30, 2021, compared to $1,982,389 thousand at December 31, 2020, marking a growth of 20.9%[14] - Total loans increased to $1.77 billion as of September 30, 2021, up from $1.45 billion as of December 31, 2020, reflecting growth in commercial and non-residential real estate loans[48] - Total loans increased by $66.9 million to $1.76 billion during the three months ended September 30, 2021[161] - Total deposits increased to $579,875,000 in 2021 from $491,259,000 in 2020, reflecting a growth of 18%[22] Income and Expenses - Net interest income after provision for loan losses for the nine months ended September 30, 2021, was $56,198 thousand, up from $34,274 thousand for the same period in 2020, an increase of 64.1%[15] - Noninterest income for the three months ended September 30, 2021, was $21,951 thousand, compared to $19,398 thousand in the same period of 2020, a rise of 13.3%[15] - The company reported a provision for loan losses of $380 thousand for the three months ended September 30, 2021, compared to a provision of $8,631 thousand for the same period in 2020, a decrease of 95.6%[15] - Noninterest income for the nine months ended September 30, 2021, was $48.1 million, down from $75.8 million in the same period of 2020, representing a decrease of approximately 36.5%[213] - The decline in noninterest income was primarily due to a $33.4 million decrease in mortgage fee income[213] Investments and Acquisitions - MVB Financial Corp. continues to expand its Fintech-related investments and subsidiaries, including MVB Technology and Flexia Payments, to enhance its service offerings[26] - The Bank acquired majority interests of 80.0% in both Flexia and Trabian, and a 93.4% interest in MVB Technology, consolidating 100% of these entities in financial statements[30] - The company recognized a pre-tax gain of $10.8 million from the sale of four banking centers in West Virginia in July 2021[157] - The company increased its equity investment in Interchecks to $7.7 million, allowing for significant influence over operations as of September 30, 2021[100] Loan Quality and Allowance for Loan Losses - The allowance for loan losses decreased to $25,187 thousand as of September 30, 2021, from $25,844 thousand at December 31, 2020, indicating a reduction of 2.5%[14] - The allowance for loan losses (ALL) balance as of September 30, 2021, was $24,808 thousand, down from $24,882 thousand at June 30, 2021[81] - Troubled debt restructurings (TDRs) totaled $7.7 million as of September 30, 2021, with accruing TDRs representing 8% of total impaired loans[83] - The provision for loan losses was a release of $1 thousand for the quarter ending September 30, 2021, indicating a decrease in expected credit losses[81] - The total average investment in impaired loans for the nine months ended September 30, 2021, was $14,664,000, with interest income recognized on an accrual basis of $44,000[58] Market and Economic Conditions - The impact of the COVID-19 pandemic on future operating results remains uncertain, depending on potential resurgences of the virus and related economic conditions[34] - The Bank's financial reporting capabilities and operations have been disrupted due to the COVID-19 pandemic, impacting clients and third parties[34] - The adoption of ASU 2016-13, effective for fiscal years ending after December 15, 2022, may lead to an increase in the allowance for loan losses due to a shift from an "incurred loss" model to an "expected loss" model[35] Capital and Debt - The company issued subordinated debt of $30,000,000 in 2021, which was not present in the previous year[22] - Subordinated debt balance increased to $72.966 million as of September 30, 2021, from $43.407 million at the end of 2020, representing a 67.9% increase[111] - In September 2021, the company completed a private placement of $30 million fixed-to-floating rate subordinated notes, maturing on October 1, 2031[112] Miscellaneous - The company had lease liabilities totaling $17.1 million as of September 30, 2021, with a weighted-average remaining lease term for operating leases of 12.2 years[94] - The company recognized investments totaling $4.0 million in affordable housing projects, with cumulative amortization of $1.5 million as of September 30, 2021[46] - The company issued 24,408 shares of unregistered common stock valued at $40.97 per share, totaling $1.0 million in September 2021[122]