Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (September 2018)
21 slides from Mvb Financial's investor presentation, Sep 4, 2018
Slide 1: Investor Presentation: Fundamental Banking with Blue Ocean Opportunities
INVESTOR PRESENTATION Fundamental Banking with Blue Ocean Opportunities September 2018 NASDAQ: MVBF
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures This Presentation contains 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. These forward‐looking statements are based
Slide 3: MVB Today
MVB Today MVB is an innovative financial holding company that provides banking and mortgage services to individuals andcorporateclientsintheMid‐Atlantic region and Fintech clients throughout the United States. Locations: 14 branches, 17 mortgage offices Why MVB? NASDAQ: MVBF • Consistent growth Stoc
Slide 4: MVB Strategy
MVB Strategy 1 2 3 4 Complementary Continued Culture & Talent Speed, Service, Business Lines Organic Growth Acquisition Simplicity • Strategic shifts to • History of strong • Entrepreneurial • Continuous focus blue oceans Asset Quality mentality on client • Think beyond • Diversified • “Yes, if” ins
Slide 5: MVB's Portfolio of Businesses
MVB’s Portfolio of Businesses Commercial and Retail Fintech • 11 Branches in WV and 3 in VA • Companies that manage or move money with technology • 12 Commercial Lenders • Corporate deposit and payments focus • Commercial: Loans, Deposits, and Non‐interest Income • Non‐interest Income • Retail: Depo
Slide 6: Strong Record of Organic Growth
Strong Record of Organic Growth $ in Millions Total Assets YoY Growth Highlights from June 30, 2017 to June 30, 2018 CAGR 18% $1,800 $1,685 Area Percent Increase $1,600 $1,534 $1,384 $1,419 $1,400 Noninterest‐bearing Deposits 35.1% $1,200 $1,110 $987 $1,000 Service Fees 32.4% $800 $727 $600 $533 $41
Slide 7: Financial Highlights 2018 Q2 Results
Financial Highlights 2018 Q2 Results $ in thousands, except per share FY 2016 FY 2017 2017 YTD 2018 YTD Balance Sheet . Gross loans HFI increased 5.0% from prior Total Assets $1,418,804 $1,534,302 $1,507,053 $1,685,419 quarter, 9.9% from year end, and 10.2% year‐ Gross Loans HFI $1,052,865 $1,105,94
Slide 8: Strategic Talent Acquisition
Strategic Talent Acquisition An Independent Bank Mindset that embraces the “Yes, if” Culture PMG Acacia BB&T Acquisitions 2012 2013 2015 Wells Fargo Washington First ‐ BB&T Insurance 2013 Sandy Spring 2005 2017/2018 12 Team Members 23 Insurance Agents Lift Outs Sold in 2016 9Team Members HNB VA Comm
Slide 9: Loan Portfolio
Loan Portfolio Diversified Blend of Commercial and Residential Lending Net Loans Held for Investment Loan Portfolio Composition $1,400 CAGR 18% 450% CRE % $1,204 400% $1,200 Commercial $1,096 Capital Real Estate $1,044 350% $1,024 Commercial 28% $1,000 Based 300% ‐ Business Risk 35% $792 $800 Total
Slide 10: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Diverse portfolio subsections CRE Loans AD&C Loans Apartments Commercial Hotels Nursing Homes Market Development 13% 7% 18% 15% Office Apartments & 3% Apartments Low Multifamily Personal Lot Loans Income 5% 3% 2% Residential ‐ Speculative Other 6% 2% Residential Deve
Slide 11: Asset Quality Trends
Asset Quality Trends Non‐Performing Loans / Total Loans NCOs / Average Loans 3.40% 0.70% 2.86% 2.92% 0.60% 2.90% 0.60% 0.52% 2.33% 2.35% 2.40% 2.24% 0.50% 1.93% 1.72% 0.40% 1.90% 0.42% 0.31% 1.35% 0.30% 0.35% 0.22% 1.40% 0.18% 0.20% 0.25% 0.10% 0.12% 0.90% 1.16% 0.10% 0.17% 0.17% 0.04% 0.88% 0.99% 0
Slide 12: NIM – Peer Comparison
NIM – Peer Comparison Four years of continued NIM expansion 4.20% 4.09% 4.00% 3.90% 3.79% 3.82% 3.80% 3.67% 3.60% 3.40% 3.38% 3.27% 3.22% 3.20% 3.07% 3.01% 3.00% 2014 2015 2016 2017 Q2 2018 MVBF Regional Peers Source: SEC filings and SNL Financial. Regional peers defined as public institutions headq
Slide 13: Deposit Growth with NIB Focus
Deposit Growth with NIB Focus $1,200,000 $1,161,313 16% $1,121,580 $1,092,507 14% $1,000,000 $921,924 12% $800,000 $771,004 10% millions Deposits in Total $600,000 8% of Balance % a as 6% $400,000 Average NIB 4% $200,000 2% $‐ 0% 2014 2015 2016 2017 YTD 2018 NOW Money market checking Savings IRAs CD
Slide 14: Retail Modernization
Retail Modernization • New leadership and commitment • Strategic locations for new Branch Banking Centers • Enhance consumer lending, deposits, and fee income • Mix of traditional and digital Average Total Deposits per Branch ‐ $83.4 Million (1) Source: Company documents. (1) Year‐to‐date average ba
Slide 15: Mortgage Volume Analysis
Mortgage Volume Analysis $ in Millions Historical Volume Comparison (1) 2018 Dollar Volume by State (1) $1,800 DC Other WV 5% 2% 6% $1,643 MD 6% $1,600 $1,541 $1,400 $1,339 NC/SC $1,200 32% VA 49% $1,012 $1,000 $838 (2) $770 2018 Dollar Volume by Transaction Type $800 $736 Refinance 10% $600 Constru
Slide 16: Expanded Fintech Strategy
Expanded Fintech Strategy Keep Up Get Ahead 1. Offer Solutions to 3. Become Banking Strengthen Client Partner for Fintech Relationships Companies GOAL Increase Positive Exposure to Fintech Trends 2. Utilize Productivity 4. Make Investments in Enhancing Tools Fintech Companies
Slide 17: Fintech Differentiators – Distinct or Extinct
Fintech Differentiators – Distinct or Extinct NIB Growth Opportunity of $100MM+ from our Network of Current Clients and Technology Partners Target Segments Companies that use technology to manage or move money Service Speed 1. Payments Processing ‐ Concierge Team ‐ Dedicated 2. Corporate Payments ‐
Slide 18: Investment Conclusions
Investment Conclusions Continue Firing on All Cylinders in 2018 Quality Loan Improve Continue Talent Nurture the Growth Deposit Mix Acquisition “Yes, if” Culture Reward Shareholders by Executing on MVBF’s Differentiated Plan
Slide 19: Q&A Session – Thank You for Joining Us Today
“Being on Nasdaq and in the Russell 2000 Index are not a destination, they are only one part of the journey. We are thinking bigger.” ‐ Larry F. Mazza CEO and President, MVB Financial Corp. Q&A Session Thank You for Joining Us Today
Slide 20: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation NONINTEREST INCOME / OPERATING REVENUE For the year ended, For the 6months ended, (Dollars in Thousands) 12/31/2016 12/31/2017 06/30/2017 06/30/2018 Total Noninterest Income 43,205 40,706 20,391 19,834 Less: Realized Gain on Securities (1,082) (731) (350) (326) Oper
Slide 21: 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
MVB Financial — Investor Presentation (September 2018) on 6ix