Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (March 2019)
23 slides from Mvb Financial's investor presentation, Mar 26, 2019
Slide 1: Investor Presentation March 2019
Investor Presentation March 2019 1
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures 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
Slide 3: Our Why Statement
Our Why Statement /’pur-pose/ noun – the reason for which something is done or created or for purpose: which something exists. “Trusted Partners on the Financial “ Frontier – Committed to Your Success! 3
Slide 4: MVB Values
MVB Values Trust Commitment Teamwork Adaptability RLC 4
Slide 5: Our World Today: Disruption Creates Opportunities
Our World Today Disruption Creates Opportunities o Uber vs Yellow Top Cabs o Netflix vs Movie Theaters o Fintech vs Banking MVB’s “Blue Ocean” Strategy Embraces Disruption “The Fintech tsunami is brewing and banks are becoming yellow top taxis in an Uber world ‐ we must modernize or become irrelevan
Slide 6: MVB Today: The Financial Frontier
MVB Today The Financial Frontier MVB is an innovative financial holding company that provides banking services to individuals and corporate clients in the Mid-Atlantic region, as well as Payment and Fintech Deposit clients throughout the United States. Company Statistics Why MVB? o NASDAQ: MVBF o Co
Slide 7: MVB Portfolio of Business
MVB Portfolio of Business Complimentary Business Lines – Regional Lending with National Deposits Commercial & Mortgage Fintech Payment & Retail Deposit Services o 12 banking centers in WV and 3 in NoVa o Headquartered in Fairfax, VA o Providing services to corporate clients o Commercial: Loans, Depo
Slide 8: Fintech Strategy Execution
Fintech Strategy Execution Keep Up Get Ahead 1. Offer Solutions to 3. Become Banking Strengthen Client Partner for Fintech Relationships Companies GOAL Lower Risk, Increase Positive Higher Risk, Common in Most Banks Exposure to Less Common in Banks Fintech trend drivers 2. Utilize Productivity 4. Ma
Slide 9: Fintech Differentiators
Fintech Differentiators “Distinct, Not Extinct” 2019 Growth Coming from Mix of NIB & Reasonably Priced IB Deposits How We Grow Current Portfolio Mix o Insiders to Fintech industry clients and technology partners Specialty o Robust pipeline Escrow 38% o Highly skilled & non-traditional bankers Hospit
Slide 10: NIM Expansion – Outpacing Peers
NIM Expansion – Outpacing Peers Active Focus on NIM & Upward Trend 4.20% 4.09% 4.00% 3.90% 3.82% 3.79% 3.80% 3.64% 108 bps 3.60% 23 bps 3.41% 3.40% 3.27% 3.22% 3.20% 3.07% 3.01% 3.00% 2014 2015 2016 2017 2018 MVBF Regional Peers Source: SEC filings and SNL Financial. Regional peers defined as public
Slide 11: Deposit Growth with NIB Focus
Deposit Growth with NIB Focus NIB CAGR of 26% in Four Years $1,400,000 20% $1,231,091 18% $1,200,000 $1,092,507 $1,121,580 16.32% 16% $1,000,000 $921,924 14% $771,004 12% $800,000 10% $600,000 8.15% NIB/Total Deposits 8% $400,000 6% NIB as a % of Total Deposits Total % of as a NIB Average Balance in
Slide 12: Strong Record of Organic Growth
Strong Record of Organic Growth Growth with Profitability Emphasis $ in Millions Total Assets December 31, 2018 YoY Growth Highlights CAGR 17% $2,000 $1,751 $1,534 $1,384 $1,419 $1,500 Area Percent Increase $1,110 $987 $1,000 $737 Noninterest-bearing Deposits 69.6% $414 $533 $500 Service Fees 35.0%
Slide 13: Financial Highlights 2018 Results
Financial Highlights 2018 Results $ in thousands, except per share FY 2016 FY 2017 FY 2018 Balance Sheet Total Assets $1,418,804 $1,534,302 $1,750,969 o Net income increased 58.5% year-over-year Gross Loans HFI $1,052,865 $1,105,941 $1,304,366 o Gross loans HFI increased 17.9% year-over-year Total D
Slide 14: Diversified Loan Portfolio Growth & Active Management of Concentration Limits
Diversified Loan Portfolio Growth & Active Management of Concentration Limits Net Loans Held for Investment Loan Portfolio Composition $1,400 450% Acquisition & Residential CRE % 400% Development - 23% $1,200 HVCRE Home Equity 350% 2% 4% $1,000 Acquisition & Consumer 300% Development 1% 7% $800 250%
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Diversification within CRE Concentration CRE Loans AD&C Loans Apartments - Market Apartments & 17% Apartments - Multifamily Low Income 5% 1-4 Family 2% Residential Retail Commercial Owner 17% Development Occupied 14% 42% Nursing Homes 23% Nursing Homes 8% Office Stor
Slide 16: Consistent, Top Tier Asset Quality
Consistent, Top Tier Asset Quality Non-Performing Loans / Total Loans NCOs / Average Loans 3.40% 2.86% 2.92% 0.65% 0.60% 2.90% 0.52% 2.33% 2.24% 2.35% 0.55% 2.40% 1.93% 0.45% 0.31% 1.90% 0.35% 1.35% 0.42% 0.22% 1.40% 0.95% 0.25% 0.35% 0.18% 0.12% 0.11% 0.15% 0.25% 0.10% 0.90% 1.16% 0.99% 0.17% 0.17%
Slide 17: Retail Modernization
Retail Modernization Channel Diversity o New leadership and commitment o Strategic locations for new banking centers o Enhanced consumer lending, deposits and fee income o Mix of traditional and digital o 5 FTE Call Center manages 17 ITMs at 7 banking centers Average Total Deposits per Branch $88.3
Slide 18: MVB Mortgage Overview
MVB Mortgage Overview High Quality, Consistently Profitable Operations Historical Volume Comparison 2018 Dollar Volume by State (1) $1,800 NC/SC 33% $1,643 $1,600 $1,541 $1,447 MD $1,400 $1,339 6% DC 6% $1,200 Other 3% WV $1,000 VA 6% $838 46% $800 2018 Dollar Volume by Transaction Type (2) $600 Pur
Slide 19: Strategic & Opportunistic Talent Acquisition
Strategic & Opportunistic Talent Acquisition An Independent Bank Mindset that Embraces a, “Yes, if” Culture Susquehanna Branch PMG Acacia BB&T Branches Acquisitions 2008 2012 2013 2015 Wells Fargo Insurance Recent NoVa M&A Lift Outs BB&T 2013 Disruption 2005 23 Team Members 2017/2018 12 Team Members
Slide 20: Addressing Risk Management
Addressing Risk Management Cost of Investing in the Future & Scalability Risk Mitigation o Diversified geographic portfolio Overhead management Mortgage Volatility o o High quality loans o Purchased loan focus o History of strong asset quality CRE Concentration o Management and monitoring of concent
Slide 21: Q&A Session
Q&A Session Thank You for Joining Us Today 21
Slide 22: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation NONINTEREST INCOME / OPERATING REVENUE TANGIBLE BOOK VALUE PER SHARE For the year ended, For the year ended, (Dollars in Thousands) 12/31/2016 12/31/2017 12/31/2018 (Dollars in Thousands) 12/31/2018 Total Noninterest Income $ 43,205 $ 40,706 $ 38,640 Less: Realized
Slide 23: Contact Us
Contact Us MVB Financial Corp. 301 Virginia Avenue Fairmont, WV 26554 (304) 363-4800 Investor Relations Lisa McCormick MVB Financial Corp. (304) 367-8697 23