Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Corporate Update (March 2020)
18 slides from Mvb Financial's corporate update, Mar 20, 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: Our Commitment: MVB COVID-19 Thesis
Our Commitment MVB COVID-19 Thesis Today for this virus there is no vaccine, no real cure and no immunity in any community. It is very contagious and spreading rapidly across the world with little sign of slowing. Dr. Anthony Fauci says it is “10 times more lethal than the seasonal flu.” We are quic
Slide 4: Responding to COVID-19
Responding to COVID-19 “During the COVID-19 situation, | have been criticized for overreacting; actually | like it. As bankers, we are risk managers with the responsibility to mitigate risk as soon as possible to help reduce loss. The potential cost of underreaction is too high. I’d rather be judged
Slide 5: Pandemic (Coronavirus) Response
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: Team Member Efforts
Team Member Efforts Demographics Analysis We are meeting multiple times per day, everyday, to assess our workforce to ensure we can continue our commitment to support our clients. Using sophisticated analysis tools, we have a complete picture of our valued Team Members.
Slide 7: Pandemic (Coronavirus) Communications
Pandemic (Coronavirus) Communications STOP THE SPREAD OF GERMS Coronavirus Update | As aTeam iteimpon i ‘gh thing te saying home we ae sick We away want ext Coronavirus Questions & Answers. ‘eos and communities eo trste pare asenmucnsesislsaise dadscins nlsilddasupemcmenaoen: ‘noncl Corp Unatorzeise
Slide 8: Pandemic (Coronavirus) Response
Pandemic (Coronavirus) Response = Detailed review of Top Industries and Areas of Concentration = Reconciliation between industry scorecards, stress test and current portfolio = Annual review on all loans over $1 million = Weekly Management Loan Review Committee meeting = Client follow up and discuss
Slide 9: Top Industries
Top Industries Top 3 Industries Other Industries = Healthcare = Oil and Gas = 150% of Capital — Policy = 40% of Capital — Policy = $185M- 91.77% of Capital = $33M — 16.56% = Government = Weighted Risk Grade — 4.81 = 100% of Capital — Policy = Auto/ Equipment Leasing = $119M — 59.20% = 25% of Capital
Slide 10: Refreshed LTV / DSCR by CRE Concentration
Refreshed LIV/ LIC/ OSCR by CRE Concentration Top 75% of the following CRE Concentrations CRE Concentrations (Weighted Averages) (Weighted Averages) = CRE Office = CRE Healthcare = DSCR- 1.66 = DSCR- 1.56 = LTIV—65.65% = LIV-68.67% = Top 75% Balance —$125M = Balance- $115M = CRE Retail = CRE Hotel =
Slide 11: Consistent, Top Tier Asset Quality
Consistent, Top Tier Asset Quality Non-Performing Loans / Total Loans NCOs / Average Loans 350% 345% 3.26% 0.35% 3.40% 081% 076% 0.75% 0.55% 190% ose iGo: 146% 32% ee 117% 106% pang 0.35% 19% 022% 021% 0.35% 011% 0.12% oom 0.14% 718% — aoxg 5% 0.25% 0.28% 0.40% 0.88% 9 7796 som 088% 0.17% 0.12% 0.07
Slide 12: 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 13: Liquidity stress tests 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 14: Deposit Growth with NIB Focus
Deposit Growth with NIB Focus NIB CAGR of 37% in Five Years Net Interest Margin Average Deposit Balances $1,400,000 25% $1,227,269 4.20% $1,200,000 $1,013,3 $1,000,000 $379,196 $922,492 15% $800,000 $729,707 $621,232 $600,000 10% ‘Average Balance in thousands NIB as a% of Total Deposits NIB/Total De
Slide 15: Pandemic (Coronavirus) Response: Stress Test
Pandemic (Coronavirus) Response Stress Test Capital Ratios t Stressed for 15.00% 14.46% 14.22% Bente ‘ 13.94% 14.00% 13.60%. 13.34% 13.29% 12.84% 13.00% 12.19% Graal: 12.05% 12.00% 11.45% 10.88% 10.68% 11.00% Ml 10.42% 10.24% aang 10.00% 9.50% - tf O 8.00% 2015 2016 2017 2018 2019 2020 Pro Forma Tie
Slide 16: Summary Impact to BV & TBV Per Share
Summary Impact to BV & TBV Per Share $20.00 $18.00 $16.00 $14.00 $12.93 $12.20 $12.00 $10.00 $9.81 $8.00 i $1L01 2015 2016 2017 2018 Book Value mi Tangible Book Value 2020 Pro Forma MVB Source: Company documents, 2020Proforms incudes the affect of consensus earnings estimates the branchsale, and the
Slide 17: Upcoming Transactions
Upcoming Transactions Mortgage Deal SS 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 simplifying
Slide 18: Hovde Group: The "New" Operating Environment
Hovde Group: The "New" Operating Environment ‘We highlight MVBF as we believe it is well-positioned from an earnings defensibility perspective in the near-term given >40% of its revenue has come from mortgage banking of late. In addition, MVBF is on track to see a meaningful boost to TBV (>S2 p/s) i