Mvb Financial Corp. · NASDAQ:MVBF

Mvb Financial — Investor Presentation (November 2020)

49 slides from Mvb Financial's investor presentation, Nov 13, 2020

  1. Slide 1: November 2020

    November 2020

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements MVB Financial Corp. (the “Company") has made forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21£ of the Securities Exchange Act of 1934, as amended, in this Presentation. These forward-looking statements

  3. Slide 3: TINA

    TINA WAVY, may \/\/\ DAALY w 2 ie O e © | Le © O = © = i faa) > = w io |

  4. Slide 4: Our Purpose & Values

    Our Purpose & Values “Trusted Partners on the Financial Frontier — Committed to Your Success!” @ GL @ 9g XS TRUST COMMITMENT RESPECT, LOVE, & TEAMWORK ADAPTIVE lam reliable and act | take ownership of my CARING | effectively and | easily respond to with integrity. | can be responsibilities in lam re

  5. Slide 5: MVB Today

    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. = NASDAQ: MVBF "Consistent Growth = Market Cap:

  6. Slide 6: MVB Portfolio

    MVB Portfolio Complementary Business Lines — Regional Lending with National Fintech Deposits @ = Client presence CoRe Fintech Treasury & Deposit Services = 1Obanking centers in West Virginia and 3 in Northern Virginia = Sales team basedin Salt Lake City = CoRe Banking Structure launched in Q4 2019("

  7. Slide 7: Protect the Core & Stimulate Growth

    Protect the Core & Stimulate Growth Intercoastal Mortgage, LLC Fintech Vertical

  8. Slide 8: Analyst Commentary on MVB Story

    Analyst Commentary on MVB Story en 7, 2020 ~ Aside from the meaningful EPS accretion, the most apparent N-T benefit of the transaction will be the boost to TBV from the recorded gain...lore importantly, all of this is occurring at a time when there is greater importance being placed on TBV resilienc

  9. Slide 9: TINA

    TINA WAVY, may \/\/\ DAALY = Bo > = co) > O jon) N jen) N = w ola? = © =) ow) xo) — < |

  10. Slide 10: Highlights from Q3 2020 vs. Q2 2020

    Highlights from Q3 2020 vs. Q2 2020 Tangible book value per share of $18.66, Noninterest-bearing deposits of $642.8M, increased $2.01 increased $114.3M, or 21.6% MVB Mortgage’s income from its equity Recognized a gain on mortgage method investment of ICM was $13.6M combination transaction of $3.3M A

  11. Slide 11: Significant Transactions in 2020

    Significant Transactions in 2020 FDIC-Assisted Acquisition : — of The First State Bank, Paladin, LLC Acquisition Barboursville, WV Enhances the Fintech vertical with its commitment to fraud Bargain purchase gain of prevention $4.7M Completed on April 17, 2020 Completed on April 3, 2020 TL Source: Co

  12. Slide 12: Strong Record of Organic Growth

    Strong Record of Organic Growth Growth with an Emphasis of Profitability Total Assets 2020 vs. 2019 Growth Highlights Area Percent Increase 32,214 $2,500 sisaa Se Noninterest-bearing Deposits 133.8% $2,000 $1,384 state $1,534 $1,751 $1,500 - ALLL/Total Loans‘ 124.4% $1,000 $500 Service Charges on De

  13. Slide 13: Growth in Book Value & Tangible Book Value

    Growth in Book Value & Tangible Book Value $20.00 $18.00 pv cAGR 8% $18.66 - $17.13 R 12% $16.00 aa — eV oe * — $15.20 é a $14.55 $14.00 $13.63 $12.93 $12.92 $12.20 $12.00 $11.80 $1L01 $10.00 $9.81 $8.00 2015 2016 2017 2018 2019 YTD 2020 Book Value mi Tangible Book Value $19.07 13

  14. Slide 14: Deposit Growth with NIB Focus

    Deposit Growth with NIB Focus NIB CAGR of 38% Over 23 Quarters Average Deposit Balances $2,000,000 40% $1,720,591 $1,800,000 sm 3% $1,600,000 a% i. $1,227,269 30% 2 % $1,400,000 : 3 3 - 25% @ 2 $1,200,000 1,013,318 = = $879,196 SON as ag res z @ $1,000,000 He 20% 5 $729,707 5 = $800,000 ‘ 15% & 8% 7

  15. Slide 15: Evolving Deposit Mix

    Evolving Deposit Mix Driven by continued success of deposit acquisition strategies, including fintech deposits December 31, 2015 December 31, 2017 September 30, 2020 markets markets Savings and 13% 24% Interest- ae bearing marke demand 28% 47% deposits 14% Source: Company documents. 5

  16. Slide 16: NIM Expansion - Outpacing Peers

    NIM Expansion - Outpacing Peers Active Focus on NIM & Upward Trend 4.20% 4.00% 3.80% 3.60% 3.40% 3.20% 3.00% 3.07% 2014 2015 2016 2017 2018 2019 YTD 2020 ——MVBF = @Regional Peers Source: Company documents, SEC flings, and S&P Global Market intelligence. NIM is shown on 3 fully-tax equivalent basis,

  17. Slide 17: NIM Reconciliation

    NIM Reconciliation Q3 2020 Q2 2020 | YTD 2020 Tax-equivalent net interest margin (%) 3.35% 3.78% 3.60% Less: Tax-equivalent adjustments (0.06)% (0.06)% (0.06)% \Netinterestmargin(®) © 3.29% BANK 8H Plus: Impact of excess liquidity 0.26% N/A 0.10% Impact of PPP loans 0.15% 0.14% 0.17% Impact of prepa

  18. Slide 18: Equity Method Investment in ICM

    Equity Method Investment in ICM 47% ownership of a residential mortgage lender in the Mid-Atlantic region Three Months Ended September 30, 2020 nA A INTERCOASTAL New Originations $2,296,064,769 (5,394 loans) A Vv MORTGAGE, LLC Average Loan Amount $422,680 Ending Locked Pipeline $1,059,116,542 - . Lo

  19. Slide 19: Grand Acquisition

    Grand Acquisition E< GRAND This acquisition is another creative way that MVB is looking towards the future of digital banking. F \ - = Are YOU one of ay | _ this week’s winners? |) e o %, ‘ o. The Grand app gives MVB a very ~ » attractive direct-to-consumer mobile ) og a») a QA channel. How It Works

  20. Slide 20: GRAND 2.0: Cheaper, Faster Gaming Payments

    GRAND 2.0: Cheaper, Faster Gaming Payments 2.0 @ cranp The existing consumer app. A dedicated wallet for gaming. Benefit to Users + Fund and cash out in real time. + Load via ACH or Credit Card. + Potential to pass savings through to users in form of credits and/or loyalty. Co re ben efits of ~ Paym

  21. Slide 21: TINA

    TINA WAVY, may \/\/\ DAALY w = je) O co) << a 7 1S) w aa je) = oO

  22. Slide 22: COVID-19 Executive Summary

    COVID-19 Executive Summary Proudly supporting our Trusted Partners Managing disruption from a position of strength and soundness Being “Defensively Offensive” Selected COVID-19 impacts e: Company documents,

  23. Slide 23: Loan Modifications

    Loan Modifications Commercial Loans Requesting Concessions as of 09/30/20 Resoluti Approved and/or Booked | Mod tions as a % of —— Modifications Total Commercial Loans Interest-Only Payments $ 41,056,030 3.61% Total $ 41,056,030 3.61% Mortgage Loans Requesting Concessions as of 09/30/20 Recolution A

  24. Slide 24: Paycheck Protection Program Participation

    Paycheck Protection Program Participation a S BA U.S. Small Business Administration LJ | # of Loans Current Balance Average Balance Fee Income Tranche #1 $68.4M $283K $2.2M Tranche #2 $21.4M S97K $770K

  25. Slide 25: Diversified Loan Portfolio

    Diversified Loan Portfolio Growth & Active Management of Concentration Limits Net Loans (includi ans of branches held for sale) an Portfolio Composition ‘SBA Paycheck $1,600 450% Protection Acquisition & program Development - gg Residential $1,400 a HVCRE 18% 2% $1,200 220% Acquisition & Development

  26. Slide 26: Commercial Real Estate Portfolio

    Commercial Real Estate Portfolio Diversification within CRE Concentration CRE Loans AD&C Loans Apartments- Market ‘Storage Units Apartments- 11% 1% Low Income 5% Commercial 1-4 Family Residential Development Owner Occupied 10% 47% Nursing Homes Retail 32% _ Office 6% PersonalLot Loans 1% Residential

  27. Slide 27: Other Real Estate Owned

    Other Real Estate Owned Reduced acquired OREO from FSB by 130 properties and $4.0M in six months As of December 31, 2019 As of June 30, 2020 As of September 30, 2020 Balance ee %of Total Balance ee %of Total Balance ee % of Total Construction, land development, and other land $1,395,329 5 94% $5,094

  28. Slide 28: CRE Loan Concentration Characteristics

    Source: Company documents. CRE Loan Concentration Characteristics * Geographic diversity among 10 states in the US = $126.4M in loan balances among 14 borrowers = 71.58% occupancy = Weighted Average = Risk Grade of 4.14 = Star Rating of 2.09 "No delinquency * As of 9/30, there are no Nursing Home lo

  29. Slide 29: AD&C Portfolio Characteristics

    AD&C Portfolio Characteristics AD&C Mortgage Construction = $132M in loan balances (67% in VA, 25% in WV, $139M in loan balances with 324 borrowers 8% other) ™ Geographically-distributed among 8 states: 35% = 1-4 Family/ADC - $67M or 50% of total AD&C VA, 40% NC, 11% SC, 7% MD, 1% WV, 1% GA, = S$50M

  30. Slide 30: Consistent, Top Tier Asset Quality Through Cycles

    Consistent, Top Tier Asset Quality Through Cycles ALLL / Total Loans (Excluding PPP) azn °8* 3.26% 1.80% 1.7436 a 1.66% 2.90% 20% 1.80% 159% 148% 1.3086 134% 1.26% 1.90% EN 08 1.30% 139% 109% 01% 009/Afooy an 105% g.prq, 10% 090% 080% 096% 000% Ain, 088% gral ose 0.88% aM ue 088% ogi °° o7e% orem o7

  31. Slide 31: Bank Capital Position

    Bank Capital Position Tangible Common Equity / Tangible Assets (%) @) 12.00% 11.00% 10.88% 49 gg0 10.04% 10.64% 9.45% 10.00% 786% 8.13% 8.66% 10.50% 10.24% 3. 9.94% BOE rag 10.00% 6.00% 9.50% 4.00% 9.50% 2.00% 9.00% 0.00% 8.50% 2015 2016 2017 2018 2019 32020 2015 2016 2017 2018 2019 32020 Tier 1 Ris

  32. Slide 32: MVBF Stock

    MVBF Stock Insider Holdings Reaffirm that We Believe in MVB! Top Holders as of September 30, 2020 | Position | EJF Capital LLC 1.1M PIPER SANDLER The Vanguard Group, Inc. 573K BlackRock Institutional Trust Company, N.A. 486K Wellington Management Company, LLP 340K Larry Mazza, President & CEO 352K D

  33. Slide 33: TINA

    TINA WAVY, may \/\/\ DAALY £ 3 ie) = <>) iS 5 =) £ n

  34. Slide 34: Gen-Z Banking Survey

    Gen-Z Banking Survey MANOLE CAPITAL MCM | MANAGEMENT

  35. Slide 35: Fintech Strategy Execution

    Fintech Strategy Execution Keep Up Get Ahead 1. Offer Solutions to Strengthen Client Relationships 3. Make Investments in Fintech Companies GOAL Increa Positive Exposure to Fintech trend drivers Common in Most Banks Less Commonin Banks 4. Become Trusted Banking Partner for Fintech Companies 2. Utili

  36. Slide 36: MVB Fintech Thesis

    MVB Fintech Thesis Fintech Bank 1. Identify a niche 1. Access to payment rails 2. Build a solution to meet the needs of 2. FDIC insured deposits users in niche 3. All Fintech companies need a banking 3. Generate revenue with a highly relationship profitable business model 4. Scale quickly Technology

  37. Slide 37: Fintech Investment Portfolio Performance

    Fintech Investment Portfolio Performance $25,000 a €) BiLLGo- ALLIED $20,000 . <r SAM ENT MET WORE . P<FinClusive &% interchecks i 10,000 — payall Socure /\\v Commerce = A\R Ventures ssco0 A Stronghold 2016 2017 2018 2019 YTD 2020 Cash Investment =Fair Value

  38. Slide 38: Fintech Differentiators - “Distinct, Not Extinct”

    Fintech Differentiators - “Distinct, Not Extinct” Future Growth Coming from Mix of NIB & Reasonably Priced IB Deposits As of September 30, 2020 Balance Cost of Funds YTD Fee Income Hospitality & Gaming $ 206,572,834 Payments Processing. $75,908,814 Cryptocurrency $ 75,491,724 0.20% $632,985 Digital

  39. Slide 39: Compliance & Fraud Coverage

    Compliance & Fraud Coverage CHARTWELLA= REGULATORY COMPLIANCE & RISK MANAGEMENT = Over 150 fintech companies served, ranging from the unicorns to the Fortune 50 = Industry-leading hyper-specialization to fintech state and federal compliance = Well-recognized brand across the industry = Nearly all st

  40. Slide 40: Strategic & Opportunistic Talent Acquisition

    Strategic & Opportunistic Talent Acquisition An Independent Bank Mindset that Embraces a, “Yes, if” Culture BB&qT Branches Chartwell Compliance [| The First Acquisitions Recent NoVa M&A Wells Fargo Insurance Disruption 2013 2017/2018 23 Team Members 12 Team Members Sold in 2016 SBA Lending Team 2020

  41. Slide 41: Strategic Opportunities Creating Value

    Strategic Opportunities Creating Value Capital generation through opportunistic transactions 2020: 2019: Eastern 2005: Fintech Panhandle, WV Acquired 2013: investment banking centers banking center MV6 Insurance 2016: holding gain of sold for a pre- in Eastern lift out of 23 First Fintech $13.5M (pr

  42. Slide 42: Addressing Risk Management

    Addressing Risk Management Cost of Investing in the Future & Scalability Risk = Diverse portfolio Asset Quality = Increased ALLL = strongmarkets = Investmentin team through Chartwell and Paladin acquisitions = Continuous communication with regulators = Technical expertise and experienced Fintech ind

  43. Slide 43: Full Coverage Risk Management

    Full Coverage Risk Management Investment in & Strong Attention to ERM MVB embraces a culture of compliance and risk management Significant investments were made over the past year in people, processes, and systems supporting the ERM program. Acquisitions of Chartwell and Paladin provide MVB and its

  44. Slide 44: 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

  45. Slide 45: TINA

    TINA WAVY, may \/\/\ DAALY = = = @ 2. roe <

  46. Slide 46: Management Team

    +30 years of experience in the bankingindustry, including community banks and BB&T ‘*Member of the WV Board of Bankingand Financial institutions “Served on the Board of Directors for PDC Energy “Serves on the Board of Directors for BillGO Big 4 experience Co-owner of Football Talk, LLC TOM BROWN'S.

  47. Slide 47: Experienced Board of Directors

    Experienced Board of Directors David B. Alvarez Year Appointed: 2013 Chairman of the Board President, Energy Transportation ‘Committees: Loan Approval, MVB CDC, & ‘MVB Insurance (Chair) John W. Ebert (1) Year Appointed: 2013 President, J.W. Ebert Corporation Committees: Audit, Finance (Chair), Nomin

  48. Slide 48: Appendix: Financial Comparisons

    Appendix: Financial Comparisons $ in thousands, except per share Q3 2020 Q2 2020 Q3 2019 YTD 2020. YTD 2019 Balance Sheet Total Assets $2,214,459 $2,215,157 $1,961,952 $2,214,459 $1,961,952 Gross Loans HFI!! $1,428,593 $1,494,672 $1,374,541 $1,428,593 $1,374,541 Total Deposits !! $1,898,957 $1,863,9

  49. Slide 49: Appendix: Non-GAAP Reconciliation

    Appendix: Non-GAAP Reconciliation TANGIBLE BOOK VALUE PER COMMON SHARE For the quarter ended, (Dollars in Thousands) 09/30/2020 Goodwill $ 2,350 Plus: Intangibles 2,554 Total Intangibles $ 4,904 Total Equity $ 234,116 Less: Preferred equity (7,334) Less: Total Intangibles (4,904) Tangible Common Equ

MVB Financial — Investor Presentation (November 2020) on 6ix