Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — KBW Community Bank Investor Conference 2013
29 slides from Mvb Financial's conference presentation, Jul 25, 2013
Slide 1: KBW Community Bank Investor Conference: MVB Financial Corp. Briefing
1 KBW Community Bank Investor Conference July 31, 2013 MVB Financial Corp. Briefing
Slide 2: Forward Looking Statement
2 Forward Looking Statement Certain matters discussed in this presentation that are based on other than historical data are forward - looking within the mean ing of the Private Securities Litigation Reform Act of 1995. Forward - looking statements provide current expectations or forecasts of future
Slide 3: MVB: A History
3 MVB: A History • MVB Financial Corp. (MVB) is an OTC market traded stock (MVBF symbol) with a market capitalization of ~$106 million (and a value of $30.75 per share) as of July 18, 2013 • MVB Financial Corp. 2013 2QE Total Assets: $ 782 million • MVB Financial Corp. has several key subsidiaries –
Slide 4: Why MVB Will Be "Your Most Valuable Bank"
4 Why MVB W ill B e “Your M ost V aluable B ank” Experienced, Invested Management Team and Board of Directors • Averaging 23 years of growth - oriented banking & executive management experience • Re - investing in company with combined executive/board ownership of 38% of MVB Exceptional Performance
Slide 5: MVB: Achievements Through the Great Recession 2009-2012
5 • Net income increased 403% • Assets grew 180% • Loans grew 120% • Deposits increased 180% Growth • Non - performing loans among lowest in the nation • Charge - offs among lowest in the nation • No TARP money ever taken Protection • Ranked as #7 in assets among WV - based banks • Increased overall
Slide 6: MVB Capital Position: Demonstrating Strength
6 MVB Capital Position: Demonstrating Strength Dividend Reinvestment Program (DRIP) showed 46% participation during most recent June 2013 cycle compared to standard USA market average of 10% Steadily Increasing Market Capitalization Demonstrating Strength with Robust Ratios $29 $29 $34 $48 $54 $ 97
Slide 7: MVB Financial Position: Quality Balance Sheet
7 Loans : $474,854,000 Assets: $781,951,000 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2006 2007 2008 2009 2010 2011 2012 2013 (In Thousands) Total Assets MVB Financial Position: Quality Balance Sheet $0 $100,000 $200,000 $300,000 $400,000 $500,000 2006 2007 2008 2009
Slide 8: MVB: Capital Management
8 MVB: Capital Management Disciplined Capital Management Principles • Deploy the most efficient capital model • Focus on balance sheet and non - interest income growth • Target little to no capital dilution • Be ahead of the game by never waiting to raise capital Successful Investment Principles • F
Slide 9: MVB: Recent Capital Raises
9 MVB: Recent Capital Raises Private Placements • Private placements in 2008, 2010, and 2012 • 2010 private placement goal of $4 million – sold out quickly; final capital raise total was $8 million • 2012 private placement goal of $20 million with an over allotment of $25 million; final capital rais
Slide 10: Performance: MVB / S&P / KBW Bank Index
10 Performance: MVB / S&P 500 / KBW Bank Index MVB $30,179 10.1% KBW Bank Index $6,972 - 3.1% S&P 500 $13,699 2.8% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Jun 2013 Value of $10,000 Invested in December 2001 MVB Stock Perfo
Slide 11: MVB Profile: Strong Growth in Deposits
11 MVB Profile: Strong Growth in Deposits $134,593 $157,448 $173,065 $264,531 $300,434 $390,545 $486,519 $531,338 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2006 2007 2008 2009 2010 2011 2012 2Q 2013 Thousands
Slide 12: MVB: Deposit Portfolio Profile
12 MVB: Deposit Portfolio Profile Net Non - Core Funding is now 13%; down from a high of 19% Demand Deposits 11% Interest - Bearing Demand Deposits 46% Savings & Money Market 10% Time Deposits 20% Brokered Deposits 4% CDARS Deposits 9% 30 - JUNE - 13 Demand Deposits 11% Interest - Bearing Demand Dep
Slide 13: MVB: Cost of Funds
13 MVB: Cost of Funds Comparison of Cost of Funds Over Time 0.00 0.50 1.00 1.50 2.00 2.50 Interest-Bearing Demand Deposits Demand Deposits Savings & Money Market Time Deposits Brokered Deposits CDARS Deposits 3/31/2012 6/30/2012 12/31/2012 3/31/2013 6/30/2013
Slide 14: MVB Profile: Strong Growth in Loans
14 MVB Profile: Strong Growth in Loans Loans by Segment Strong Growth in Loans $143 $182 $203 $233 $294 $374 $446 $474 $0 $100 $200 $300 $400 $500 2006 2007 2008 2009 2010 2011 2012 2Q 2013 Millions Commercial Real Estate 51% Residential Real Estate 28% Commercial 10% Real Estate Construction 4% Hom
Slide 15: MVB Profile: Credit Metrics Trends
15 $ In Thousands Year End 2010 Year End 2011 Year End 2012 2QE 2013 Loans Past Due 30 - 89 Days $ 2,619 $ 5,125 $ 3,289 $ 5,794 Nonperforming Loans (NPLs) $ 2,791 $ 2,758 $ 3,125 $ 1,358 Real Estate Owned $ 403 $ 176 $ 207 $ 183 Total Nonperforming Assets $ 3,194 $ 2,934 $ 3,332 $ 1,541 Net Charge
Slide 16: MVB Asset Quality: By Business Segment
16 MVB Asset Quality: By Business Segment 88% 10% 2% Risk Code 1-4 [614 Loans] Risk Code 5-6 [75 Loans] Risk Code 7-8+ (Includes TDR & Impared) [14 Loans] Commercial Loans 91% 9% 0% Risk Code 1-4 [623 Loans] Risk Code 5-6 [79 Loans] Risk Code 7-8+ (Includes TDR & Impaired) [3 Loans] Mortgage Loans 9
Slide 17: Larry Mazza, Chief Executive Officer
17 Larry Mazza, Chief Executive Officer • Brings 27 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 John Schirripa, Regional President • Brings 26 years banking experience • Serves as Executive Vice President for President and CEO of MVB Bank Inc. - Central • Leads the MVB Central Commercial Lending Team • Served as Vice President and Relationship Manager with Chase • Served as Senior Vice Pres
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, 52 * Chief Executive Officer, MVB Financial President & Chief Executive Officer, MVB Bank 27 8 186,637 Roger Turner, 61 * Preside
Slide 20: MVB Strategy: Growth & Diversification
20 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 in existing and new markets • Acquiring select branches in existing and new ma
Slide 21: Organic Successes: Core Banking Growth
21 Organic Successes: Core Banking Growth Expanded into Morgantown, WV in Q2 2011 • First Morgantown branch profitable three quarters after opening • Second Morgantown branch opened in March 2013 • $60 million in deposits at Morgantown branches as of 7/15/13 Opened first Clarksburg, WV branch in Q4
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 focused on title insurance and ~$200,000 in annual revenue Added 16 new employees in Q1 and Q2 2013, including new seasoned leadership and team members from Wells Fargo, Huntingt
Slide 23: MVB M&A Growth: Selective & Strategic
23 Drives Shareholder Value Asset Quality Deposits Geographic Growth in Attractive Markets Addition Growth Potential Cultural Fit Talent & New Expertise MVB M&A Growth: Selective & Strategic • Conducting Disciplined Deal - making: M&A deals will be rooted in a reasonable transaction price – based up
Slide 24: Potomac Mortgage Group acquisition
24 • Potomac Mortgage Group ( PMG ), direct residential mortgage lender, was acquired by MVB in December 2012 • Based in Fairfax, VA with lending in VA, MD, WV, DE and DC with sales offices in Reston, Fairfax, and McLean, VA and a joint venture loan operations center in Alabama • Top 100 USA Mortgag
Slide 25: MVB Growth: Targeting Attractive Markets
25 MVB Growth: Targeting Attractive Markets • Features West Virginia University, major health care centers, and growing private sector ( Mylan , etc.) • Serves as hub for Marcellus & Utica energy production plays • Offers US government facilities (DOE, FBI, DOD, etc.) North Region: Morgantown, Fairm
Slide 26: MVB Markets: Today & Tomorrow
26 MVB Markets: Today & Tomorrow Current & Pending Markets • North Region – Morgantown (2) – Fairmont (2 w/ 1 replacement pending) – Bridgeport – Clarksburg • East Region – Charles Town – Martinsburg (2) – MVB Mortgage (mortgage only) o Fairfax (currently mortgage only ) o McLean (currently mortgage
Slide 27: Summary: Why Invest in MVB?
27 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
Slide 28: Final Thoughts & Contact Information
28 A Great Story Today… with excellent performance during the Great R ecession, 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 an opportu
Slide 29: This Presentation has been prepared solely for information purposes and to assist prospective investors
29 This Presentation has been prepared solely for information purposes and to assist prospective investors who receive this Pres ent ation (the “Recipients”) in deciding whether to proceed with a further investigation of MVB Financial Corp. Under no circumstances shall th is Presentation be deemed o
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