Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — KBW Community Bank Investor Conference 2017
21 slides from Mvb Financial's conference presentation, Jul 31, 2017
Slide 1: MVB Financial – KBW Community Bank Investor Conference
rave FINANCIAL — Larry F. Mazza, CEO & President ¥ 2 Donald T. Robinson, Executive Vice Presid ident & CFO. ee KBW Community Bank Investor Conference - August 2, 2017 .
Slide 2: Disclaimers
DISCLAIMERS Forward Looking Statements MVB Financial Corp. 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. These forward-looking statements are
Slide 3: The MVB Team's goal today
The MVB Team’s goal today is to... ¢ Share the MVB growth story — Past, Present, Future * Provide our vision of profitable community banking ¢ Explain why we believe we are a “up-and-comer” in our industry aa FINANCIAL
Slide 4: A Well-Positioned, Growing Bank
A Well-Positioned, Growing Bank Funding Profitability Gia FINANCIAL ¢ Loan growth funded by growing core deposits More convenient AlTs and digital channels, less legacy of branch locations ¢ Strong business relationship deposits ¢ Continued growth in net interest income ¢ Excellent non-interest inco
Slide 5: Experienced Management Team
Experienced Management Team Larry Mazza, Chief Executive Officer Don Robinson, Chief Financial Officer + 19 years of banking, financial institution and Big 8 accounting experience + Named Chief Operating Officer of MVB Financial Corp. in 2012, CFO in 2016 * Served as Market President and Commercial
Slide 6: MVB Overview
MIVB Overview ¢ MVB Financial Corp. — Total Assets: $1.5 billion — 15 branches, 18 mortgage offices, and a central operations center — Two operating companies (MVB Bank and MVB Mortgage) — Divested MVB Insurance as of June 30, 2016 — Strong fee income streams * Mortgage: $18.6M -— 21% loan and 23% d
Slide 7: Track Record of Organic Growth
Track Record of Organic Growth Net Loans HFI ($M) Total Assets ($M) $1,875 $1,507 ’ $7,024$1,044 $1,093 $1,500 $1,384 $1,419 . : $1,110 $900 poe: $792 $1,125 cP $987 $617 $727 600 750 ° $292 #371 ae ° $353 $414 I $300 4 $201 $231 | | $375 45259 ii | lol 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q
Slide 8: MVB: Shareholder Value Focus
MVB: Shareholder Value Focus GROWTH Organic M&A Deposits Loans Markets Client Development FINANCIAL Cost Control Budget Management Modeling / Analysis CULTURE Core Values Workplace Compliance #MVBSynergy Client Experience OPERATIONS Efficiency Ratio Project Management Facilities Best in Class Focus
Slide 9: Our Growth Strategies
Our Growth Strategies Organic Growth Opportunistic Growth Fee Income Streams aa FINANCIAL Increase the productivity of existing relationships Enhance existing geographic footprint Measure expansion into new geographies Enhance profitability through improved core funding Explore potential acquisition
Slide 10: Targeting Attractive Markets
Targeting Attractive Markets East Region: Washington D.C. Metropolitan Area Central WV Region: Morgantown, Fairmont, Bridgeport & Clarksburg South Region: Charleston, WV Expansion Markets: SW Pennsylvania, Central Virginia & Carolinas FINANCIAL 35 © 6.1 million people, high-growth, median HHI >$93,0
Slide 11: New Market Demographics Accretive to MVB Legacy Franchise
New Market Demographics Accretive to MVB Legacy Franchise Detroit Cleveland / Pittsburgh Toronto / New York City Washington, D.C Louisville~ Nashville Richmond ™ Charlotte Jacksonville Atlanta * Radius reference point Charleston, WV MVBF current franchise deposit weighted by county. aa FINANCIAL Est
Slide 12: Selective & Strategic M&A Growth
Selective & Strategic M&A Growth Drives Shareholder Value Attractive Geographic Markets Additional F 4 Growth Potential aa FINANCIAL M&A Assessment Model ° Conducting Disciplined Deal-making: M&A deals will be rooted in a reasonable transaction price — based upon asset quality and deposits — and mus
Slide 13: MVB Bank Notable Events
MVB Bank Notable Events Opened two new, technology- focused branch locations, with automated interactive teller Morgantown, WV systems — Morgantown, WV — Leesburg, VA * Capital Management — Repaid SBLF — Completion of a $5 million Rights Offering as a follow up to the $22 million Private Placement c
Slide 14: Second Quarter Financial Highlights
Second Quarter Financial Highlights ($000s except per share) 2017 YTD Financial Highlights Balance Sheet Gross loans HFI increased 1% YoY and Total Assets $1,384,476 $1,418,804 | $1,484,962 $1,507,053 6% from year end, while reducing _ Gross Loans HFI 1,032,170 1,052,865 1,087,506 1,102,378 commerci
Slide 15: Current Loan Portfolio
Current Loan Portfolio Loan Portfolio Composition Strong Asset Quality Home Equity Consumer ($ in thousands) ; 6% 1% Special Mention 3% Commercial $35,185 Residentia Business 22% ici Pass = Substandard 96% 1% $1,050,869 $13,299 Acquisition & —<a _. Development - ae HVCRE 6 3% $3,025 Acquisition & De
Slide 16: Strong Asset Quality
Strong Asset Quality Nonperforming Assets ($000) $16,000 $12,000 $9,830 $10,492 $8,000 36,643 $6,226 $3,452 $3,661 | = | — 2011 2012 2013 2014 2015 2016 Q2 2017 MNonaccrual MOREO 1 90+ DPD NPAs / Assets 3.00% 2.21% 5 5.58% 1.91% 1.70% 4 7 1.50% 1.19% 1.01% 1.19% 1.00% 0.75% 0.12% y oom — 0.89% o6% r
Slide 17: Current Deposit Portfolio
Current Deposit Portfolio Noninterest bearing Time deposits demand including CDs 10.4% and IRAs 24.7% Interest bearing demand Savings and 39.1% money markets 25.8% Q2’17 Cost of Deposits = 0.71% FINANCIAL a) “teccont7 age bares. $960.0 $800.0 $640.0 $480.0 Non-Time Deposits ($M) $320.0 $160.0 $0.0 D
Slide 18: Mortgage Volume Analysis
tgage Volume Analysis Historical Volume Comparison ($M) 2017 YTD Dollar Volume by State) MD on 7% $1,643 wy $757 $770 3% NC/SC 2013 2014 2015 2016 2016 YTD 2017 YTD 25% Historical Mortgage Fee Income ($M) 2017 YTD Volume by Transaction Type’) $36.0 $30.0 Construction nay 080% Origination “ 17% Er Pu
Slide 19: Thank You – Question and Answer Session
MVB FINANCIAL THANK YOU QUESTION AND ANSWER SESSION IR.MVBbanking.com 844-MVB-BANK ot FINANCIAL
Slide 20: Appendix
FINANCIAL Appendix GM rNANCIAL
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation NONI At or for the year ended, At or for the 6 months ended, (Dollars in Thousands, Except per Share) 12/31/15 12/31/16 06/30/16 06/30/17 Total Noninterest Income 34,955 43,205 20,613 20,391 Less: Realized Gain on Securities (130) (1,082) (603) (350) Less: Gain on Sale of Sub
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