Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Q1 2024 Earnings Presentation
23 slides from Mvb Financial's earnings presentation, May 6, 2024
Slide 1: Investor Presentation Q1 2024
INVESTOR PRESENTATION Q 1 2 0 2 4 M V B – F 1 : S U C C E S S L O V E S S P E E D
Slide 2: Forward-Looking Statements
MVB Financial Corp. (“MVB” or the “Company”) has made 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, in this presentation that are intended to be covered by the protections p
Slide 3: Driving on a Wet Track with the Caution Flag Out: Adapting to the Wet Track
Driving on a Wet Track with the Caution Flag Out: Adapting to the Wet Track
Slide 4: MVB's Strategy on a Page (SOAP)
Trust Commitment TeamworkRespect, Love & Caring Adaptive Enterprise Risk Management Talent & Culture Operational Excellence Our Why To positively impact people’s financial lives, one life at a time Purpose Trusted partners on the financial frontier, committed to your success MVB’s Strategy on a Page
Slide 5: Key Connection Points Across the MVB Strategy
Key Connection Points Across the MVB Strategy Victor Strategic Lending Partnerships Gaming Payments & Acquiring Payments & Acquiring Gaming Provide deposit funding sources for SLP Offers a key product to Gaming and Digital Assets clients to build our moat; Issuing & Acquiring often packaged together
Slide 6: Q1 2024 Key Highlights
Source: Company documents and SEC Filings Q1 2024 Key Highlights • Total revenue increase of 6.8%, or $2.4M • Fintech fee income increase of 26.3%, or $1.0M • Noninterest-Bearing Deposits as percentage of total deposits – 44.2% • Nonperforming loans decreased 8.7%, or $0.7M • Tangible book value per
Slide 7: Driving Industry-Leading TBV Growth
Driving Industry-Leading TBV Growth $19.73 $22.17 $20.25 $22.43 $22.48 $19.00 $20.00 $21.00 $22.00 $23.00 2020 2021 2022 2023 2024 Source: Company documents and SEC Filings. Tangible Book Value (per share)
Slide 8: Continued Growth of Deposit Base
Source: Company documents and SEC Filings $1,267 $1,257 $1,339 $1,704 $1,754 $716 $1,120 $1,232 $1,197 $1,391 $295 $483 $724 $1,092 $1,527 2020 2021 2022 2023 2024 Total Interest-bearing deposits Total Noninterest-bearing deposits Off Balance Sheet On Balance Sheet: NIB/Total Deposits 36% On Balance
Slide 9: Deposit Composition
Deposit Composition Source of Deposits CoRe* 56% Fintech 44% Title (C) 3% Speciality (C) 5% Retail (C) 12% Commercial (C) 28% Public Funds (C) 8% Digital Assets (F) 11% Gaming (F) 8% Payments (F) 13% BaaS (F) 11% Deposits Breakdown – 03/31/2024 Source: Company documents and SEC Filings. *Commercial
Slide 10: Growth of Fintech Banking at MVB | 2020 – 2024
$1,286 $6,394 $12,330 $15,722 $3,998 $5,366 2020 2021 2022 2023 Q1 2023 Q1 2024 Growth of Fintech Banking at MVB | 2020 – 2024 Source: Company documents and SEC Filings. *Commercial and Retail. (F) – Fintech deposits. (C) – CoRe deposits. $829 $1,624 $1,855 $2,038 $2,572 2020 2021 2022 2023 2024 Gro
Slide 11: Ability to Adapt Loan Production Based on Market Conditions
$1,428 $1,852 $2,349 $2,295 $2,245 $- $500 $1,000 $1,500 $2,000 $2,500 2020 2021 2022 2023 2024 Net Loans ($ Millions) 15% CAGR Source: Company documents and SEC Filings. Ability to Adapt Loan Production Based on Market Conditions
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition Portfolio by Industry Source: Company Documents. *3.0% of MVB’s total loans were non-owner-occupied office space. Commercial Business 32.8% Commercial Real Estate 30.1% Acquisition & Development 6.4% Home Equity 0.6% Residential 29.1% Consumer 1.1% Other 17.2% Office Space
Slide 13: Credit Quality
Credit Quality
Slide 14: Consistent, Top Tier Assets Quality Through Cycles
0.94% 0.95% 0.47% 0.36% 0.33% 0.94% 0.64% 0.48% 0.52% 0.56% -0.40% 0.30% 1.00% 1.70% 2020 2021 2022 2023 2024 MVBF Peers Non-Performing Loans / Total Loans 0.14% 0.08% 0.36% 0.40% 0.23% 0.08% 0.04% 0.05% 0.29% 0.30% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 2020 2021 2022 2023 2024 MVBF - Auto MVBF - Non-
Slide 15: Non-Performing Loans
Non-Performing Loans Source: Company Documents. All data as of December 31, 2023. By Loan Type ($ Thousands) Commercial NPLs – by Industry ($ Thousands) Energy $ 1,316 Healthcare (SBA) $ 761 Government $ 264 Other $ 552 SBA Loans (various industries) $ 1,750 Office $ 216 Consumer Auto $220 HELOC $81
Slide 16: Backer of Fintech
Backer of Fintech
Slide 17: Investments Focused on Strategic Partnerships
$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2017 2018 2019 2020 2021 2022 2023 2024 (i n t h o u sa n d s) Cash Investment Estimated Fair Value Investments Focused on Strategic Partnerships Source: Company documents. Backer of Fintech • Realized gains of $2.5M s
Slide 18: Capital Strength
Capital Strength
Slide 19: Bank Capital Position
9.8% 9.6% 8.3% 8.6% 8.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2020 2021 2022 2023 2024 Tangible Common Equity / Tangible Assets (%) (1) 11.0% 11.6% 9.8% 10.5% 10.1% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 2020 2021 2022 2023 2024 Tier 1/Community Bank Leverage Ratio (%) Source: Company document
Slide 20: Caution Flags – Mitigation
Caution Flag Mitigation Asset Quality Risk • Long history of strong asset quality • Proactive portfolio management • Disciplined and staged approach to new areas of lending Compliance/ Regulatory Risk • Significant investment in risk & compliance team • Technical expertise and experienced FinTech in
Slide 21: Risk Management | Investments in Staffing and Capabilities
Risk Management | Investments in Staffing and Capabilities (3-year trend) Teams 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Risk Management* 10 12 11 14 16 22 23 24 24 24 30 27 32 BSA/AML (MVB)** 17 19 18 18 18 18 18 18 23 31 50 59 50 BSA/AML (Co-sourced FTEs)** 5 12 15 17 19 23 22 21
Slide 22: Best Workplaces awards
BEST WORKPLACES IN FINANCIAL, AMERICAN BANKER, “~ & NSURENEE © Best Banks S to Work For 1) | Certified MEDIUM WORKPLACES™ Great Place To Work. FEB 2023-FEB 2024 USA
Slide 23: Tangible Common Equity / Tangible Assets Reconciliation
Source: Company documents. Tangible Common Equity / Tangible Assets (%) (Dollars in thousands) 2018 2019 2020 2021 2022 2023 2024 Total equity attributable to parent $ 176,773 $ 211,936 $ 239,483 $ 274,328 $ 261,084 $ 289,342 $ 291,850 Total assets 1,750,969 1,944,114 2,331,476 2,792,449 3,068,860 3