Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Q3 2023 Earnings Presentation
25 slides from Mvb Financial's earnings presentation, Oct 27, 2023
Slide 1: Investor Presentation Q3 2023
INVESTOR PRESENTATION Q 3 2 0 2 3 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
3 Driving on a Wet Track with the Caution Flag Out: Adapting to the Wet Track
Slide 4: MVB's Strategy on a Page
4 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 Pa
Slide 5: Key Connection Points Across the MVB Strategy
5 Key Connection Points Across the MVB Strategy Victor Strategic Lending Partnerships Gaming Payments & Acquiring Payments & Acquiring Gaming Digital Assets Provide deposit funding sources for SLP Offers a key product to Gaming and Digital Assets clients to build our moat; Issuing & Acquiring often
Slide 6: Q3 2023 Key Highlights
6 Q3 2023 Key Highlights Source: Company documents and SEC Filings. • Balance sheet deposits increased 2.7%, or $80.0M, from last quarter and 12.7%, or $341.9M, from last year. Brokered deposits decreased 11.7%, or $71.0M, from last quarter • NIB deposit increase of 10.8%, or $106.3M • Balance sheet
Slide 7: Continued Growth of Deposit Base
7Source: Company documents and SEC Filings $986 $1,267 $1,257 $1,339 $1,945 $279 $716 $1,120 $1,232 $1,094 $92 $295 $483 $724 $1,115 2019 2020 2021 2022 YTD 2023 Total Interest-bearing deposits Total Noninterest-bearing deposits Off Balance Sheet On Balance Sheet: NIB/Total Deposits 22% On Balance S
Slide 8: Deposit Composition
8 Deposit Composition Source of Deposits CoRe* 59% Fintech 41% Title (C) 4% Speciality (C) 6% Retail (C) 12% Commercial (C) 28% Public Funds (C) 9% Gaming (F) 15% Digital Assets (F) 7% Payments (F) 11% BaaS (F) 8% Deposits Breakdown – 09/30/2023 Source: Company documents and SEC Filings. *Commercial
Slide 9: Growth of Fintech Banking at MVB 2020-2023
9 Growth of Fintech Banking at MVB | 2020 – 2023 $829 $1,624 $1,855 $2,362 2020 2021 2022 2023FYF $1,286 $6,394 $12,330 $20,853 2020 2021 2022 2023FYF 46.3% CAGR Gross Deposits ($ Millions) Gross Fee Income ($ Thousands) 175.4% CAGR Source: Company documents. FYF – Full year forecast.
Slide 10: Ability to Adapt: Loan Growth
10 Ability to Adapt Loan Growth $1,096 $1,293 $1,375 $1,428 $1,852 $2,349 $2,246 $- $500 $1,000 $1,500 $2,000 $2,500 2017 2018 2019 2020 2021 2022 YTD 2023 Net Loans ($ Millions) 13% CAGR Source: Company documents and SEC Filings.
Slide 11: Loan Portfolio Composition
11 Loan Portfolio Composition Portfolio by Industry Source: Company Documents. *3.0% of MVB’s total loans were non-owner-occupied office space. Commercial Business 35.8% Commercial Real Estate 28.2% Acquisition & Development 5.4% Home Equity 0.7% Residential 28.7% Consumer 1.3% Other 22.7% Office Sp
Slide 12: Credit Quality
12 Credit Quality
Slide 13: Consistent, Top Tier Asset Quality Through Cycles
13 0.37% 0.94% 0.95% 0.47% 0.47% 0.87% 0.94% 0.64% 0.48% 0.75% -0.40% 0.30% 1.00% 1.70% 2019 2020 2021 2022 YTD 2023 MVBF Peers Non-Performing Loans / Total Loans 0.07% 0.14% 0.08% 0.36% 0.50% 0.08% 0.08% 0.04% 0.05% 0.18% 0 0.001 0.002 0.003 0.004 0.005 0.006 2019 2020 2021 2022 YTD 2023 MVBF - Aut
Slide 14: Non-Performing Loans
14 Non-Performing Loans Source: Company Documents. All data as of June 30, 2023. By Loan Type Commercial NPLs – by Industry Energy $ 2,713,316 Healthcare (SBA) $ 516,329 Government $ 792,990 Other $ 3,200,787 Office $ 227,096 Consumer Auto $942,993 HELOC $165,176 Commercial $7,450,518 Acquisition &
Slide 15: Gaming Industry Overview
15 Gaming Industry Overview
Slide 16: Sports Betting Anticipated Market Adoption Waves
16 Sports Betting Anticipated Market Adoption Waves • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level An anticipated 88% of the U.S. adult population will have access to regulated sports betting by 2026(1), expanding the potential for the market that produc
Slide 17: US Sports Betting Gross Gaming Revenue Outlook
17 US Sports Betting Gross Gaming Revenue (GGR) Outlook Source: 1 – EKG’s U.S Sports Betting Market Monitor | Oct. 2023 EKG shows total U.S. sports betting GGR between 2018 and 2027E annually. The market’s recent, exponential growth has been driven by a few factors—namely, the rapid legalization and
Slide 18: U.S. Online Casino – Market Landscape
18 U.S. Online Casino – Market Landscape Source: U.S. Online Casino Monitor | Sept 2023; EKG’s All States Est. Online Casino GGR By Brand | Sept 2023; EKG’s All States Est. Online Sports Betting GGR By Brand | Oct 2023 Operational Authorized But Not Yet Operational 2023 YTD GGR Totals by Online Segm
Slide 19: Backer of Fintech
19 Backer of Fintech
Slide 20: Investments Focused on Strategic Partnerships
20 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2016 2017 2018 2019 2020 2021 2022 YTD 2023 (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
Slide 21: Capital Strength
21 Capital Strength
Slide 22: Bank Capital Position
22 8.1% 8.7% 9.5% 9.8% 9.6% 8.3% 7.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2017 2018 2019 2020 2021 2022 YTD 2023 Tangible Common Equity / Tangible Assets (%) (1) 10.7% 10.2% 9.9% 11.0% 11.6% 9.8% 10.4% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 2017 2018 2019 2020 2021 2022 YTD 2023 Tier 1/Commun
Slide 23: Caution Flag Mitigation
23 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
Slide 24: Our Awards & Accolades
Our Awards & Accolades Great [RNUHCNIN Sim | ; ——— f Place § Best Banks ky i ‘ «i to Work For BEST ork. IN FINANCIAL Certified P -BAI Quartz &INSURANCE™ NOV 2021-NOV 2022 Sy INNOUATION EMPLOYER MEMBER i Onze, 7. I~ (( THE SMARTER RANKING BANKING. oDiersnyiee ?) BANK TECHNOLOGY THE BEST BANKS AWARD z
Slide 25: Tangible Common Equity / Tangible Assets reconciliation
25Source: Company documents. Tangible Common Equity / Tangible Assets (%) (Dollars in thousands) 2017 2018 2019 2020 2021 2022 YTD 2023 Total stockholders’ equity $ 150,192 $ 176,773 $ 211,936 $ 239,483 $ 274,328 $ 261,084 $ 271,416 Total assets 1,534,302 1,750,969 1,944,114 2,331,476 2,792,449 3,06