Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (March 2023)
31 slides from Mvb Financial's investor presentation, Mar 2, 2023
Slide 1: Investor Presentation March 2023
INVESTOR PRESENTATION M A R C H 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: Gaining the Wet Track Advantage
3 Driving on a Wet Track with the Caution Flag Out: Gaining the Wet Track Advantage
Slide 4: MVB's Strategy on a Page (SOAP) – Adapting to Wet Track Conditions
4 Trust Commitment TeamworkRespect, Love & Caring Adaptive Our Why To positively impact the financial lives of 1 billion people, one life at a time Purpose Trusted partners on the financial frontier, committed to your success Fintech Lending Grand Flexia Fintech Venture Fund Strategic M&A Enterprise
Slide 5: Creating Momentum
5 Creating Momentum 2022 Market Obstacles • Increase in Pre-Provision Net Interest Income: $34.6 million • Increase in Payment card and service charge income: $4.1 million • Increase in Consulting fee income: $5.9 million Still on Track – Moving into High Gear for Earnings Power (YTD 12.2021 – YTD 1
Slide 6: Non-interest income comparison 2022 vs 2021
6 Source: Company Documents. ICM is Intercoastal Mortgage Company, LLC. Years Ended December 31, 2022 December 31, 2021 Growth ($) Growth (%) Payment card and service charge income: Card acquiring income $ 2,790 $3,817 ($1,027) (26.9%) Service charges on deposits 3,418 634 $2,784 439.1% Interchange
Slide 7: Sale of Chartwell to Ankura
7 Sale of Chartwell to Ankura Key Takeaways • YTD 2022 revenue, net of intercompany eliminations: $10.9M with its approximately 60 team members • Purchase price: $14.4M • Estimated gain: $11.5M • Originally purchased in September 2019 for $4.1M with 16 employees and $4M in revenue • At date of sale,
Slide 8: Track Record of Strong Loan Growth
8 Track Record of Strong Loan Growth $1,096 $1,293 $1,375 $1,428 $1,852 $2,349 $- $500 $1,000 $1,500 $2,000 $2,500 2017 2018 2019 2020 2021 2022 Net Loans ($ Millions) 16% CAGR GGL Expansion Strategic Lending Partnerships Fast Track Vehicles:
Slide 9: Loan Portfolio Composition
9 Loan Portfolio Composition Portfolio by Industry Source: Company Documents. Commercial real estate is abbreviated as “CRE.” Commercial Business 35.3% Commercial Real Estate 26.7% Acquisition & Development 5.4% Other 1.4% Residential 25.7% Consumer 5.5% Other 38.0% Healthcare 20.7% Residential 25.7
Slide 10: Growth Vehicles Drive Low-Cost Deposits
10Source: Company documents and SEC Filings $1,034 $1,096 $986 $1,267 $1,257 $1,339 $126 $214 $279 $716 $1,120 $1,232 $92 $295 $483 $724 2017 2018 2019 2020 2021 2022 Off Balance Sheet Total Noninterest-bearing deposits Total Interest-bearing deposits On Balance Sheet NIB/Deposits 11% On Balance She
Slide 11: Fintech Performance Trends
11 Fintech Performance Trends $534 $1,142 $1,131 $295 $482 $724 $0 $500 $1,000 $1,500 $2,000 2 0 2 0 2 0 2 1 2 0 2 2 Deposit Growth Off Balance Sheet Deposits $693 $6,350 $12,407 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 2 0 2 0 2 0 2 1
Slide 12: MVB Is The Leading Financial Partner to the Online Gaming Industry
12 MVB Is The Leading Financial Partner to the Online Gaming Industry MEDIAB2C OPERATORS iGAMING CONTENT iLOTTERY TECH PAYMENT PROCESSING CASUAL GAME BETTING SPORTS BETTING TECH DFS SPORTS DATA ESPORTS BETTING SPORTS ANALYSIS BANKING DEPOSITS PAM PLATFORMS iLOTTERY GEO LOCATION ESPORTS MEDIA B2B Tec
Slide 13: Gaming Industry Overview
13 Gaming Industry Overview
Slide 14: US Sports Betting Market Landscape
14 US Sports Betting Market Landscape Source: EKG’s U.S Sports Betting Market Monitor | February 2023 Single-Game Sports Betting Operational Single-Game Sports Betting Authorized But Not Yet Operational Other
Slide 15: Sports Betting Anticipated Market Adoption Waves
15 Sports Betting Anticipated Market Adoption Waves Source: 1- EKG – US Sports Betting Policy Monitor | Jan 2023; 2 – EKG’s U.S Sports Betting Market Monitor | February 2023 An anticipated 88% of the US adult population will have access to regulated sports betting by 2026(1), expanding the potential
Slide 16: US Sports Betting Gross Gaming Revenue (GGR) Outlook
16 US Sports Betting Gross Gaming Revenue (GGR) Outlook Source: 1 – EKG’s U.S Sports Betting Market Monitor | February 2023 ; Source 2 – VIXIO Gambling Compliance estimates EKG shows total U.S. sports betting GGR between 2018 and 2023E annually. The market’s recent, exponential growth has been drive
Slide 17: AGA Super Bowl LVII Wagering Estimates
17 AGA Super Bowl LVII Wagering Estimates Source: American Gaming Association • A record 50.4 million American adults (20%) were expected to bet $16B on Super Bowl LVII according to the AGA. • The expected number of bettors is a 61 percent increase from AGA’s 2022 estimates, and the expected wagerin
Slide 18: US Online Casino – Market Landscape
18 US Online Casino – Market Landscape Source: U.S. Online Casino Monitor | January 2023; EKG’s All States Est. Online Casino GGR By Brand | Dec. 2022; EKG’s U.S. Sports Betting Market Monitor | January 2023 Operational Authorized But Not Yet Operational 2022 GGR Totals by Online Segments 6 Operatio
Slide 19: MVB Credit
19 MVB Credit
Slide 20: Asset Quality: Net Charge Offs and Delinquent Loans
20 Asset Quality Net Charge Offs Source: Company Documents. Data as of December 31st of each year presented 0.07% 0.15% 0.07% 0.36% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 2019 2020 2021 2022 ALF Auto Consumer HELOC Residential Mtg Commercial Net Charge Offs 0.90% 1.15% 1.17% 1.
Slide 21: Non-Performing Loans Trend By Loan Type
21 Non-Performing Loans Trend By Loan Type 0.37% 0.80% 0.91% 0.47% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2019 2020 2021 2022 ALF Auto Consumer HELOC Residential Mtg Commercial Total NPLs Source: Company Documents. Data as of December 31st of each year presented Commercial
Slide 22: Special Assets By Industry and Criticized Loans
22 Special Assets By Industry - 2022 Energy 7.18% Gov. Contracting 6.65% Hospitality 43.72% Healthcare 6.75% CRE Office 3.91% Retail 4.84% Recreation 6.39% Residential AD&C 8.73% Comm. Other 5.71% Residential Mtg 5.47% HELOC 0.65% Consumer 0.00% CRE 55.98% C&I 18.80% Own Occ. 10.36% AD&C 8.73% Resid
Slide 23: Investments Focused on Strategic Partnerships
23 $- $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 (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 Venture Portfolio Fast Track
Slide 24: Bank Capital Position
24 8.1% 8.7% 9.5% 9.8% 9.6% 8.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2017 2018 2019 2020 2021 2022 Tangible Common Equity / Tangible Assets (%) (1) 10.7% 10.2% 9.9% 11.0% 11.6% 9.8% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 2017 2018 2019 2020 2021 2022 Tier 1/Community Bank Leverage Ratio (%) T
Slide 25: 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 26: Caution Flag Mitigation
26 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 • Investment in team through Chartwell and Paladin acquisitions • Technical expertise and experi
Slide 27: Tangible Common Equity / Tangible Assets reconciliation
27Source: Company documents. Tangible Common Equity / Tangible Assets (%) (Dollars in thousands) 2017 2018 2019 2020 2021 2022 Total stockholders’ equity $ 150,192 $ 176,773 $ 211,936 $ 239,483 $ 274,328 $ 261,084 Total assets 1,534,302 1,750,969 1,944,114 2,331,476 2,792,449 3,068,860 Equity to ass
Slide 28: Appendix
28 Appendix
Slide 29: Four Lanes on the Track in Revenue Growth
29 Four Lanes on the Track in Revenue Growth Provider-of-choice for specialized financial services to gaming, crypto, BaaS/LaaS, and payments companies Banker of Choice to Fintechs Builder and enabler of the next generation of Fintech and embedded finance solutions Builder of Fintechs Strategic inve
Slide 30: Defining Different Stages of Maturity
30 Defining Different Stages of Maturity D e s c r i p t i o nG a u g e s ▪ Launched on a calibrated line of sight backed by proof points ▪ Concentrated resources to achieve outsized results ▪ Beginning to generate revenue/profitability, course adjustments or recalibration underway ▪ Resources deplo
Slide 31: Fast Track, Qualifying Track and Test Track initiatives
31 Government Guaranteed Lending Strategic Lending Partnerships Gaming Crypto & Web3 Acquiring Expansion Venture Portfolio Victor Banker of Choice to Fintechs Builder of Fintechs Backer of Fintechs T E S T T R A C K Q U A L I F Y I N G T R A C K F A S T T R A C K Banking That’s Tech-Forward Defining