Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (July 2021)
32 slides from Mvb Financial's investor presentation, Jul 30, 2021
Slide 1: August 2021
August 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Mv8 Financial Corp. ("MV8" or 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 that are intended to be c
Slide 3: The MVB Franchise
The MVB Franchise An innovative financial holding company providing banking services in the Mid-Atlantic region, as well as to Fintech clients throughout the United States MVB now has clients and Team Members in 33 states and Puerto Rico Fintech c 1 Banking Technology Commercial and Retail Banking =
Slide 4: Our Purpose and Values
Our Purpose and 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 and CARING | effectively and | easily respond to with integrity. | can be responsibilities in la
Slide 5: Optionality with MVBF
Optionality with MVBF Positively Impact the Financial Lives of 1B lente Great Fund Strategic Partner Experiences Companies nology and Pro Fintech investment portfolio Driving Shareholder Value Banking relationship with numerou: Cryptocurrency exchanges development h the ‘Small Business Administratio
Slide 6: Wall Street Commentary on MVB Story
Wall Street Commentary on MVB Story H HOVDE GROUP February 24, 2021 — Over the past couple of years, MV8F has dramatically transformed the deposit base which has been fueled by its Fintech initiatives/specialty deposits. Looking ahead, we continue to see a tremendous opportunity for further growth w
Slide 7: TINA
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Slide 8: Industry-leading Shareholder Value Enhancement
Industry-leading Shareholder Value Enhancement MVBF TBV $22.00 CAGR 14% $20.00 $18.00 $16.00 TBV CAGR 10% $14.00 $12.00 $10.00 $8.00 2015 2016 2017 2018 2019 2020 YTD 2021 mmm Tangible Book Value Growth in Tangible Book Value. © — — Peer Growth in Tangible Book Value Source: Company documents, SEC f
Slide 9: Fintech Initiatives Power Robust Growth in Low-Cost Deposits
Fintech Initiatives Power Robust Growth in Low- Cost Deposits... $2,500,000 44% 132,769 39% $2,000,000 (778,071 $1,500,000 $1,000,000 $729,707 $500,000 ‘Average Balance in thousands i) ! 1 i) ! 1 ! 1 i) i) ' 1 ' i) ' i) ' ' \ \ ‘ \ \ ‘ es & £$ § & Fe BSR & R k R RK NIB asa % of Total Deposits 2015 2
Slide 10: and Drive Margin Expansion
and Drive Margin Expansion Active Focus on Net Interest Margin (“NIM”) and Upward Trend 5.00% 4.81% 4.58% NIM Reconciliation YTD 2021 4.00% Tax-equivalent net interest margin (%) 3.25% Less: 3.00% 27% 31% 30% Tax-equivalent adjustments (0.07)% Plus: 2.00% Impact of excess liquidity 0.11% Impact of P
Slide 11: Fintech Differentiators - Distinct, Not Extinct
Fintech Differentiators - “Distinct, Not Extinct” As of June 30, 2021 Balance Hospitality and Gaming $ 595,897,255 neo cack $1,032.2 $1,000 426% Specialty Escrow $ 266,278,291 z @ $800 $687.9 6 Cryptocurrency $ 76,494,503 2 $600 Payments Processing $ 60,608,088 = sao0 $199.7 Digital Savings $ 32,856
Slide 12: Fintech Investment Portfolio Performance
Fintech Investment Portfolio Performance ~ ALLIED $20,000 rg Mle Commerce $ $15,000 Ais Ventures 2 PFinClusive E $10,000 &% interchecks f payall cae 3 Socure s AA Stronghold 2016 2017 2018 2019 2020 YTD 2021 US Cash Investment Estimated Fair Value REM US REAL ESTATE MARKET
Slide 13: Opportunistic Actions Have Further Enhanced Shareholder Value
Opportunistic Actions Have Further Enhanced Shareholder Value Sale of South Market, WV Banking FDIC-Assisted MVB Mortgage Combination Centers Acquisition of The with Intercoastal Mortgage, LLC First State Bank, Barboursville, WV Sale of four banking centers in Cabell, Kanawha and Putnam counties in
Slide 14: TINA
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Slide 15: Gaming Industry Expansion and Evolution
Gaming Industry Expansion and Evolution Companies are racing to manufacture and capture opportunity across the sector as states legalize gaming and a generation of users from the digital age enter the market [any a [waesrdonons | waver | woe? | wowes [wares | wows | we | a Live in Live in Live in Li
Slide 16: Payment Technologies
Payment Technologies Another creative way MVBF is looking toward the future of digital banking @ GRAND GIFLEXIA TRABIAN{ Lower cost, faster payments "Dedicated wallet for gaming = Fintech company based in Las = Leading Sorhmiate 7 = Digital integration with gaming partners Vegas, NV developricnt tm
Slide 17: Banking as a Service (BaaS) Platform
Banking as a Service (“BaaS”) Platform Providing banking services to Trusted Partners and their clients = Enables Trusted Partners to offer fully . i 4 4 7,000,000 customized, digital and compliant white- 5,796,857 0 ; , — 6,000,000 labeled financial services to their clients to . . 5,000,000 improv
Slide 18: Card Acquiring Sponsorships
Card Acquiring Sponsorships Facilitating mutually beneficial relationships with Trusted Partners = Acting as sponsor bank for payment Acquiring Bank Card Issuing Bank processors Card Networks = Responsible for funding the merchants and = ==> sending ACH payments to the processor, as well as paying c
Slide 19: SBA Lending Momentum
Source: Company documents. SBA Lending Momentum r 1 F SBA platform launched in Q1 2021 S BA U.S. Small Business LJ Administration Focus on 7A loans in specific industries = Healthcare = Funeral homes = Insurance agencies aati Full Year 2021 : forecasted National marketplace ine 30,2021 | June 30, 20
Slide 20: Strength, Safety and Soundness
TINA WAVY, may \/\/\ DAALY Strength, Safety and Soundness
Slide 21: Consistent, Top Tier Asset Quality Through Cycles
Consistent, Top Tier Asset Quality Through Cycles zie 345% 326% 3.10% aes 0.81% 24k S gam 0.85% ng? soe 2.40% A 059% ’ S18 165% ao, ‘o'eont , = 1.70% -<--. 117% 0.33% ™~ i = TT720 osm 098 081% 355 7 OR aso 920% o23% 1.00% pg J ee on os a 019% 012% 018% g ose, 16% = - =. 0.30% 0.88% ORE 0.99% 0.88% ‘
Slide 22: Diversified Loan Portfolio
Diversified Loan Portfolio Growth and Active Management of Concentration Limits Net Loans (including Loans of branches held for sale) oan Portfolio Comp: $2,000, 450% ‘SBA Paycheck tcre% Protection 3 $1,800 400% @ Acquisition & — Program Residential 8 Development 139% om $1,600 se OS ~HVCRE 2 1% Hom
Slide 23: Bank Capital Position
Bank Capital Position Tangible Common Equity / Tangible Assets (%) @) 12.0% 11.5% aed 10.0% = 8.9% 11.0% pe _— ue . zoey 8% | 8% 8.8% 8: x 10.7% 8.0% 10.5% 10.2% so 28% too% 9.9% “ : 9.5% 4.0% 9.5% 2.0% 9.0% | 0.0% 8.5% 2015 2016 «2017: «2018 «2019-2020 1.2021 a2 2021 2015 2016 «= 2017-«« 2018 «2019
Slide 24: Compliance and Fraud Coverage
Compliance and Fraud Coverage CHARTWELLA= REGULATORY COMPLIANCE & RISK MANAGEMENT paladingroup = Over 150 Fintech companies served, ranging from the unicorns to the = Founded by a group of insider industry experts who knew what fraud prevention Fortune 50 can and should be, Paladin Group offers an e
Slide 25: Addressing Risk Management
Addressing Risk Management Cost of Investing in the Future and Scalability = 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. = Strategic investments were made in RegTech compa
Slide 26: Management, Board and Stock Ownership
TINA WAVY, may \/\/\ DAALY Management, Board and Stock Ownership
Slide 27: 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 TOM BROWN'S. BANKSTOCKS.COM June 12, 2020"... had six one-one
Slide 28: Experienced Board of Directors
Experienced Board of Directors David. Alvarez Year Appointed:2013 Chairman of the Board Sm ssient, Eneray Transportation and Applies Construction Solutions Committes: Lean Approua, MVE COC Board MVBInsurance Beard (Char), and PMG Board ' W. Marston “Marty” Becker ‘Year Appointed: 2020 Former Chairma
Slide 29: MVBF Stock Ownership
MVBF Stock Ownership Insider Holdings Reaffirm that We Believe in MVB! Top Holders as of June 30, 2021 Percent of Class Ownership Summ EJF Capital LLC 880K 7.0% Wellington Management Company, LLP 662K 5.3% Insider BlackRock Institutional Trust Company, N.A. 548K 44% ne The Vanguard Group, Inc. 4ATK
Slide 30: MVB's Tech-Forward Bank Peers
MVB’s Tech-Forward Bank Peers a ‘Axos Financial, Inc. Digital Banking 14,266 2,877 228 Coastal Financial Corporation ccs BaaS 2,007 13 Communities First Financial Corporation CFST Payments/SBA 988 6 First Internet Bancorp INBK Tech-Forward/DigitalBanking 4,205 6 Green Dot Corporation GDoT Online Ban
Slide 31: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Tangible Book Value per (Dollars in thousands, except per share data) 2015 2016 2017 2 2019 0 YTD 2021 Goodwill $ 18480 $ 18480 $ 18480 $ 18480 $ 19630 $ 2350 § 4,119 Intangibles 245 744 646 550 3,473 2,400 2,692 Total stockholders’ equity $114,712 $ 145,625 $ 150,1
Slide 32: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Tangible Common Equity / Tangible Assets (%) thousands) 2015 2016 2017 2018 2019 2020 12021 2.2021 Total stockholders’ equity $114,712 $ 145,625 $ 150,192 $ 176,773 $ 211,936 $ 239,483 § 236,683 $248,611 Total assets 1,384,476 1,418,204 1,534,302 1,750,969 1,944,114