Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (November 2013)
27 slides from Mvb Financial's investor presentation, Nov 13, 2013
Slide 1: MVB Financial Corp. Investment Opportunity Overview
1 November 2013 MVB Financial Corp. Investment Opportunity Overview
Slide 2: Forward Looking Statement
2 Forward Looking Statement Certain matters discussed in this presentation, which are based on other than historical data, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of future ev
Slide 3: MVB: Background
3 MVB: Background • MVB Financial Corp. (MVB) is an OTC market traded stock (MVBF symbol) – Market capitalization of ~$112 million (based on offering price) – Total Assets: $853 million (as of end of Q3 2013) • MVB Financial Corp. has three key subsidiaries: – MVB Bank, Inc. – MVB Insurance, LLC – M
Slide 4: Summary of Offering & Related Acquisition
4 Summary of Offering & Related Acquisition Targets from $35 million to $50 million in new capital through common stock offering, priced at $32/share Focuses on maintaining appropriate ratios: 8% Leverage Ratio & 11% Risk-Based Capital Ratio Provides appropriate resources for strategic acquisitions
Slide 5: CFG Community Bank: Background
5 CFG Community Bank: Background • Started operations in 2009 with acquisition of Americas Bank Corp. as affiliate Capital Fund Group (which has closed $3B in HUD loans) became concerned about loss of access to capital • Approximately $447 million in assets, up from $249 million in 2009 • Specialize
Slide 6: CFG Acquisition Overview
6 CFG Acquisition Overview A Maryland state chartered, full service commercial bank Operates a three branch network in Lutherville, Fells Point and Annapolis Specializes in commercial lending Cash management deposit services through remote deposit capture Assets: $361 million Anticipated Net Income:
Slide 7: Comparable DC/Baltimore Transactions
7 Comparable DC/Baltimore Transactions Seller’s** Deal Price/ Tang. Return Value Times Tang. Acquirer/Seller (In Earnings Book Assets Deposits mill.) Equity/ on Avg. NPAs/ Assets Equity Assets 2013 F.N.B/BCSB $77.6 45.5X 139% 12.1% 13.8% 8.67% 3.13% 2.88% Cardinal/United Financial 53.2 51.0 182 15.9
Slide 8: Why CFG Acquisition Makes Sense
8 Why CFG Acquisition Makes Sense Diversifies MVB loan portfolio with C&I expansion, strategic focus on health care/ senior care lending, and new national client base Supports increased cross selling in new attractive markets through ability to sell MVB’s mortgage and insurance products in Baltimore
Slide 9: Why MVB is "Your Most Valuable Bank"
9 Why MVB is “Your Most Valuable Bank” Experienced, Invested Management Team and Board of Directors Averaging 25+ years of growth-oriented banking & executive management experience Re-investing in company with combined executive/board ownership of 31% of MVB Client & Community-Centric Culture Focusi
Slide 10: Presence in Marketplace – Today & Beyond
10 Presence in Marketplace – Today & Beyond = MVB Operations Center Bridgeport, WV = Current MVB Bank Locations (incl. Mortgage & Insurance at strategic locations) Central Bridgeport, WV Clarksburg, WV Morgantown/Cheat Lake, WV Morgantown/Sabraton, WV White Hall, WV East Charles Town, WV Martinsburg
Slide 11: Path from Start of Great Recession in 2009
11 Path from Start of Great Recession in 2009 Ranked as #5 in assets among WV-based banks Strongest WV-based deposit growth (Q2 ‘12 – Q2 ‘13) Increased overall market share in all markets Results Net income increased over 300% Assets grew over 200% Loans grew over 150% Deposits increased over 250% G
Slide 12: MVB Financial: Demonstrating Strength
12 = Regulatory Well-Capitalized Minimum Levels MVB Financial: Demonstrating Strength Demonstrating Strength with Capital Ratios $29 $29 $34 $48 $54 $112 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 2008 2009 2010 2011 2012 Start of 2013/2014 Offering(1) Millions End of Year / Quarter Stead
Slide 13: MVB Financial: Quality Balance Sheet
13 MVB Financial: Quality Balance Sheet $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2006 2007 2008 2009 2010 2011 2012 3QE 2013 $0 $100 $200 $300 $400 $500 $600 2006 2007 2008 2009 2010 2011 2012 3QE 2013 2013 Q3 Assets: $853,138,000 2013 Q3 Loans: $522,146,000 $0 $100 $200 $300 $400 $500 $600 $
Slide 14: MVB Bank: Strong Credit & Loan Quality
14 MVB Bank: Strong Credit & Loan Quality $ In Thousands Year End 2010 Year End 2011 Year End 2012 Q3 2013 Net Position at Q3 2013 v. YE 2012 Loans Past Due 30-89 Days $ 2,619 $ 5,125 $ 3,289 $ 3,192 Improved Nonperforming Loans (NPLs) $ 2,791 $ 2,758 $ 3,125 $ 813 Improved Real Estate Owned $ 403 $
Slide 15: MVB Financial: Performance v. Market
15 MVB Financial: Performance v. Market MVB $40,941 12.7% KBW Bank Index $6,912 -3.1% S&P 500 $14,428 3.2% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sep 2013 Value of $10,000 Invested in December 2001
Slide 16: MVB: Recent Capital Raises
16 MVB: Recent Capital Raises Recent Private Placements • Recent private placements in 2010 and 2012/2013 • 2010 private placement goal of $4 million – sold out quickly; final capital raise total was $8 million • 2012/2013 private placement goal of $20 million with an over allotment of $25 million;
Slide 17: Larry Mazza, Chief Executive Officer
17 Larry Mazza, Chief Executive Officer • Brings 28 years of banking sector management – including service in a Big 8 accounting firm and executive management roles – and possesses CPA credentials • Named CEO of MVB Financial Corp. in 2009 (after shepherding growth for MVB Bank – Central and East –
Slide 18: MVB Executives: Strong Domain Expertise
18 Randy Cober, CEO, MVB Insurance • Brings 39 years of banking experience • Serves as CEO of MVB Insurance, LLC • Leads the growth of MVB commercial, personal lines and title insurance teams • Served as Senior Vice President with Wells Fargo • Served as Senior Vice President and other roles with Mc
Slide 19: Executive Management Team
19 Executive Management Team Members MVB Position(s) Years Ownership Shares and (%) (includes all stock options granted) Banking/Finance/ Management MVB Team Larry Mazza, 53 * Chief Executive Officer, MVB Financial President & Chief Executive Officer, MVB Bank 28 8 186,637 Roger Turner, 62 * Preside
Slide 20: MVB Strategy: Growth & Diversification
20 MVB Strategy: Growth & Diversification Interest-based Growth: Organic Increasing productivity with existing team Expanding geographic footprint through new bank locations to increase loans & deposits Interest-based Growth: M&A Acquiring full banks and insurance companies in existing and new marke
Slide 21: MVB Growth: Targeting Attractive Markets
21 MVB Growth: Targeting Attractive Markets Features West Virginia University, major health care centers, and growing private sector (Mylan, etc.) Serves as hub for Marcellus natural gas play Offers US government facilities (DOE, FBI, DOD, etc.) Central Region: Morgantown, Fairmont, Bridgeport & Cla
Slide 22: Organic Success: MVB Insurance
22 Organic Success: MVB Insurance Initiated operations in 2007 with focus on title insurance Closed 2012 with 3 employees & ~$200,000 in annual title revenue Grew to 23 new employees & added seasoned leadership in 2013 Support diverse offerings – commercial, personal lines & title Expanded to over 4
Slide 23: MVB M&A Growth: Selective & Strategic
23 MVB M&A Growth: Selective & Strategic Drives Shareholder Value Asset Quality Deposits Geographic Growth in Attractive Markets Addition Growth Potential Cultural Fit Talent & New Expertise • Conducting Disciplined Deal-making: M&A deals will be rooted in a reasonable transaction price – based upon
Slide 24: Acquisition Success: MVB Mortgage
24 Acquisition Success: MVB Mortgage $1 billion+ mortgage production business (and subsidiary of MVB Bank) Business created through acquisition of Potomac Mortgage Group & subsequent integration of legacy MVB Bank mortgage team into rebranded entity Technology-driven 24x7 mortgage loan origination m
Slide 25: Summary: Why Invest in MVB?
25 Summary: Why Invest in MVB? Experienced Management Team & Board of Directors Delivers one of the most experienced leadership teams in our markets Features team with significant holdings & interests that are aligned with shareholders Client & Community-Centric Culture Focusing on providing traditi
Slide 26: We are a Great Story Today
26 We are a Great Story Today With excellent performance during the Great Recession, the advent of Basel III, a slowly improving economy and the enforcement of Dodd-Frank, many financial holding companies, bank holding companies, and banks will fall victim to regulatory issues, which will be provide
Slide 27: This Presentation has been prepared solely for information purposes and to assist prospective investors
27 This Presentation has been prepared solely for information purposes and to assist prospective investors who receive this Presentation (the “Recipients”) in deciding whether to proceed with a further investigation of MVB Financial Corp. Under no circumstances shall this Presentation be deemed or c
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