Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Corporate Update (March 2020)
20 slides from Mvb Financial's corporate update, Mar 26, 2020
Slide 1: Investor Update: COVID-19 Overview & Plan
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations about
Slide 3: Investor Update: COVID-19
Investor Update: COVID-19 I. Our Commitment Il. Our Response to Date a. Approach and Actions Taken I. Financial Update a. Safety and Soundness b. Positive Attributes to Consider
Slide 4: Our Commitment
Qur Commitment
Slide 5: Pandemic (Coronavirus) Response: Approach and Actions Taken
Pandemic (Coronavirus) Response Approach and Actions Taken @) Communications Cadence Established Crisis Management Team Established: Team comprised of Senior and Function Leaders from across the company (Daily) = Monitor recent developments, address new challenges Board information sessions (Daily)
Slide 6: Communications & Team Member Metrics
Communications & Team Member Metrics @ee We are meeting multiple times per day, everyday, to aSS€SS 5, 6u;vatieaciens our workforce to ensure we can continue our commitment — ow sere: ein icipeasicoyuneer yma to support our clients. Using sophisticated analysis tools, taning essential Dankng access
Slide 7: Pandemic (Coronavirus) Response: Rapid & Open Regulatory Dialogue
Pandemic (Coronavirus) Response Rapid & Open Regulatory Dialogue + Notification process for service disruptions and interruptions — branch closures, hours changes, etc. + Business continuity plans, liquidity and stress testing « Industry-wide mortgage processing situation concerns and issues update
Slide 8: Pandemic (Coronavirus) Response
Pandemic (Coronavirus) Response = Detailed review of Top Industries and Areas of Concentration = Reconciliation between industry scorecards, annual review, stress test and current portfolio = Weekly Management Loan Review Committee meeting = Client follow up and discussions = Evaluating current and
Slide 9: Top Industries
Top Industries Top 75% of the following CRE Concentrations leap slaclsiitss (Weighted Averages) = CRE Office = DSCR— 1.66 = LTIV—65.65% = Weighted Risk Grade — 4.17 = Top 75% Balance —$125M = CRE Retail = DSCR- 1.46 = LTIV—58.67% = Weighted Risk Grade — 3.89 = Top 75% Balance —$97M = CRE Multifamily
Slide 10: Consistent, Top Tier Asset Quality Through Cycles
Consistent, Top Tier Asset Quality Through Cycles 3.50% 3.21% 3.43% 3.26% 2.90% 2.47% 2.29% 1.68% 1.65% 1.90% 1.46% 117% 110% 1.06% — 0.90% 0.00% 0.14% 1.16% ose 03% os 0.10% 0.5496 7486. TD. 0.59% 0.54%: 037% 2008 2008 2010 2011 2012 2013 roe 2018 2016 2017 2018 2019 MV3E Regional Peers NCOs / Aver
Slide 11: Pandemic (Coronavirus) Response
Pandemic (Coronavirus) Response = Quarterly stress testing and liquidity coverage analysis = Increased liquidity and funding sources in Q1 = Analysis of concentration and industries of concern = Policies based on tier triggered monitoring = Loan sales to increase liquidity " Top 3 Industries of Conc
Slide 12: Series of stress tests on liquidity are performed quarterly
* Series of stress tests on liquidity are performed quarterly by ALM and liquidity consulting firm * Use of Liquidity Coverage Ratio (LCR) modeling = MVB has ample liquidity to withstand significant stress = We stressed our non-core funding ratio forthe loss of $100M in core deposits and will remain
Slide 13: Pandemic (Coronavirus) Response: Stress Test and Capital Ratios
Pandemic (Coronavirus) Response Stress Test 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% Source: Company documents. Ceptal ratios presented are from the Bank 2020 Proform includes th Capital Ratios ud ed for $17M Loan Loss 12 Months 14.80% 13.94% 13.29% 12.84% 12.47% - 12.05% 10.42% 10.24%
Slide 14: Mortgage: The Ultimate Down-Rate Hedge
Mortgage: The Ultimate Down-Rate Hedge = MVB Mortgage is focused in some of the best markets in the country for stability through recessions and continued home purchases $37,149 $41,045 based on the population. $32,337 = One of MVB Mortgage’s core competencies is the ability to cut expenses rapidly
Slide 15: Positive Attributes to Consider
Positive Attributes to Consider
Slide 16: Deposit Growth with NIB Focus
Deposit Growth with NIB Focus NIB CAGR of 37% in Five Years 420% $1,400,000 25% ~ $1,200,000 Dp 4.00% s 308% i $1,013,3 20% ~~ 3.85% 3.86% 3.87% 2 013; s OL ee SL 3.80% § $1,000,000 $879,196 9922-492 i 3.80% sa 3 & = $800,000 $729,707 AERIS 3.60% g $621,232 3 & $600,000 ‘% a : 10% & NIB/Total Deposi
Slide 17: Announced Transactions
Announced Transactions Mortgage Deal [aS = Agreement to combine with Intercoastal Mortgage Company = MVB will recognize ownership in the new company as a fair value equity investment and will no longer consolidate Mortgage's financial results = Allows MVB to benefit from mortgage profits, while simp
Slide 18: Summary Impact to TBV & TCE/TA Per Share
Summary Impact to TBV & TCE/TA Per Share $20.00 EEuES 11.60% $18.00 10.60% 9.45%, oieeK $16.00 8.66% 13% 8.60% $14.00 786% 7.60% $12.00 6.60% 5.79% _ i . $8.00 4.60% 2015 2016 2017 2018 2019 2020 Pro Forma mm Tangible Book Value ==Tangible Common Equity / Tangible Assets “While MVB’s current capital
Slide 19: Insider Stock Purchases
Insider Stock Purchases We Believe in MVB! Between March 5‘ and March 20**, 2020, during the Open Window: Larry Mazza, President & CEO 30,135 4 Directors 233073 “While we had previously thought highly of the company’s insider ownership (the company’s latest DEF 14A filed in April 2019 indicated mana
Slide 20: Contact
Contact Ls 2 301 Virginia Avenue MVB Financial Corp. Fairmont, WV 26554 (304) 363-4800 Investor Relations Lisa McCormick MVB Financial Corp. (304) 367-8697