Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Q4 2023 Earnings Presentation
25 slides from Mvb Financial's earnings presentation, Feb 21, 2024
Slide 1: Investor Presentation Q4 2023
INVESTOR PRESENTATION Q 4 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: Adapting to the Wet Track
3 Driving on a Wet Track with the Caution Flag Out: Adapting to the Wet Track
Slide 4: MVB's Strategy on a Page (SOAP)
4 Trust Commitment TeamworkRespect, Love & Caring Adaptive Enterprise Risk Management Talent & Culture Operational Excellence Our Why To positively impact people’s financial lives, one life at a time Purpose Trusted partners on the financial frontier, committed to your success MVB’s Strategy on a Pa
Slide 5: Key Connection Points Across the MVB Strategy
5 Key Connection Points Across the MVB Strategy Victor Strategic Lending Partnerships Gaming Payments & Acquiring Payments & Acquiring Gaming Digital Assets Provide deposit funding sources for SLP Offers a key product to Gaming and Digital Assets clients to build our moat; Issuing & Acquiring often
Slide 6: Q4 2023 Key Highlights
6Source: Company documents and SEC Filings Q4 2023 Key Highlights • Net interest margin improved by 17 bps, to 4.04% • Net interest income increased 4.2%, or $1.2M • Noninterest expense decrease of 7.9%, or $2.4M • Loan growth of 2.1%, with balance sheet loans to deposit ratio of 79.9% • Nonperformi
Slide 7: Continued Growth of Deposit Base
7Source: Company documents and SEC Filings $986 $1,267 $1,257 $1,339 $1,704 $279 $716 $1,120 $1,232 $1,197 $92 $295 $483 $724 $1,092 2019 2020 2021 2022 2023 Total Interest-bearing deposits Total Noninterest-bearing deposits Off Balance Sheet On Balance Sheet: NIB/Total Deposits 22% On Balance Sheet
Slide 8: Deposit Composition
8 Deposit Composition Source of Deposits CoRe* 57% Fintech 43% Title (C) 3% Speciality (C) 6% Retail (C) 13% Commercial (C) 26% Public Funds (C) 8% Digital Assets (F) 7% Gaming (F) 12% Payments (F) 16% BaaS (F) 9% Deposits Breakdown – 12/31/2023 Source: Company documents and SEC Filings. *Commercial
Slide 9: Growth of Fintech Banking at MVB 2020–2023
9 Growth of Fintech Banking at MVB | 2020 – 2023 $829 $1,624 $1,855 $2,038 2020 2021 2022 2023 $1,286 $6,394 $12,330 $15,722 2020 2021 2022 2023 35.0% CAGR Gross Deposits ($ Millions) Gross Fee Income ($ Thousands) 130.4% CAGR Source: Company documents. FYF – Full year forecast. Gross Deposits inclu
Slide 10: Ability to Adapt Loan Production Based on Market Conditions
10 Ability to Adapt Loan Production Based on Market Conditions $1,096 $1,293 $1,375 $1,428 $1,852 $2,349 $2,295 $- $500 $1,000 $1,500 $2,000 $2,500 2017 2018 2019 2020 2021 2022 2023 Net Loans ($ Millions) 13% CAGR Source: Company documents and SEC Filings.
Slide 11: Loan Portfolio Composition
11 Loan Portfolio Composition Portfolio by Industry Source: Company Documents. *3.0% of MVB’s total loans were non-owner-occupied office space. Commercial Business 34.4% Commercial Real Estate 29.0% Acquisition & Development 5.8% Home Equity 0.6% Residential 29.0% Consumer 1.2% Other 20.8% Office Sp
Slide 12: Credit Quality
12 Credit Quality
Slide 13: Consistent, Top Tier Asset Quality Through Cycles
13 0.37% 0.94% 0.95% 0.47% 0.36% 0.87% 0.94% 0.64% 0.48% 0.52% -0.40% 0.30% 1.00% 1.70% 2019 2020 2021 2022 2023 MVBF Peers Non-Performing Loans / Total Loans 0.07% 0.14% 0.08% 0.36% 0.40% 0.08% 0.08% 0.04% 0.05% 0.29% 0 0.001 0.002 0.003 0.004 0.005 2019 2020 2021 2022 2023 MVBF - Auto MVBF - Non-A
Slide 14: Non-Performing Loans
14 Non-Performing Loans Source: Company Documents. All data as of December 31, 2023. By Loan Type Commercial NPLs – by Industry Energy $ 1,702,297 Healthcare (SBA) $ 559,748 Government $ 791,578 Other $ 569,407 SBA Loans $ 3,081,722 Office $ 221,663 Consumer Auto $343,912 HELOC $160,934 Commercial $
Slide 15: Gaming Industry Overview
15 Gaming Industry Overview
Slide 16: US Sports Betting Gross Gaming Revenue Outlook
16 US Sports Betting Gross Gaming Revenue (GGR) Outlook Source: 1 – EKG’s U.S Sports Betting Market Monitor | Jan. 2024 EKG shows total U.S. sports betting GGR between 2018 and 2027E annually. The market’s recent, exponential growth has been driven by a few factors—namely, the rapid legalization and
Slide 17: U.S. Online Casino – Market Landscape
17 U.S. Online Casino – Market Landscape Source: U.S. Online Casino Monitor | Nov 2023; EKG’s All States Est. Online Casino GGR By Brand | Nov 2023; EKG’s All States Est. Online Sports Betting GGR By Brand | Jan 2024 Operational Authorized But Not Yet Operational 2023 YTD GGR Totals by Online Segmen
Slide 18: Backer of Fintech
18 Backer of Fintech
Slide 19: Investments Focused on Strategic Partnerships
19 $- $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 2023 (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 • Realized gains of $2.5
Slide 20: Capital Strength
20 Capital Strength
Slide 21: Bank Capital Position
21 8.1% 8.7% 9.5% 9.8% 9.6% 8.3% 8.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2017 2018 2019 2020 2021 2022 2023 Tangible Common Equity / Tangible Assets (%) (1) 10.7% 10.2% 9.9% 11.0% 11.6% 9.8% 10.5% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 2017 2018 2019 2020 2021 2022 2023 Tier 1/Community Bank
Slide 22: Caution Flag Mitigation
22 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 • Significant investment in risk & compliance team • Technical expertise and experienced FinTech
Slide 23: Risk Management: Investments in Staffing and Capabilities
23 Risk Management | Investments in Staffing and Capabilities (3-year trend) Teams 2020 2021 2022 2023 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Risk Management* 9 10 12 11 14 16 22 23 24 24 24 30 27 BSA/AML (MVB)** 17 17 19 18 18 18 18 18 18 23 31 50 59 BSA/AML (Co-sourced FTEs)** 0 5 12 15 17 19 23 2
Slide 24: Best Workplaces awards
BEST WORKPLACES IN FINANCIAL, AMERICAN BANKER, “~ & NSURENEE © Best Banks S to Work For 1) | Certified MEDIUM WORKPLACES™ Great Place To Work. FEB 2023-FEB 2024 USA
Slide 25: Tangible Common Equity / Tangible Assets reconciliation
25Source: Company documents. Tangible Common Equity / Tangible Assets (%) (Dollars in thousands) 2017 2018 2019 2020 2021 2022 2023 Total stockholders’ equity $ 150,192 $ 176,773 $ 211,936 $ 239,483 $ 274,328 $ 261,084 $ 289,342 Total assets 1,534,302 1,750,969 1,944,114 2,331,476 2,792,449 3,068,86