Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (May 2021)
30 slides from Mvb Financial's investor presentation, May 27, 2021
Slide 1: May 2021
May 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 r Banking = Providing banking as a service (“Baas”) to corporate clients * Attractive deposit gathering “blue ocean” opportuniti
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 HOVDE GROUP H 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 15% $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 fli
Slide 9: Fintech Initiatives Power Robust Growth in Low-Cost Deposits
Fintech Initiatives Power Robust Growth in Low- Cost Deposits... $2,500,000 40% $2,049,453 35% 3 $2,000,000 2 e $1,778,071 30% % g = 3 3 --- Es & - 25% & £ $1,500,000 we g 3 . e GS ais aaa. estates eer 6 3 20% 2 & $1,000,000 15% 2 Fy $729,707 2 gs z 2 10% $500,000 5% s 0% 2015 2016 2017 2018 2019 20
Slide 10: and Drive Net Interest Margin Expansion
and Drive Net Interest Margin (“NIM”) Expansion Active Focus on NIM and Upward Trend 3.70% 3.59% 3.60% 3S7% NIM Recon mn Tax-equivalent net interest margin (%) 3.26% 3.50% lesen aa0% Tax-equivalent adjustments (0.07)% 3.30% Plus: 3.20% Impact of excess liquidity 0.36% Impact of PPP loans 0.10% 3.10%
Slide 11: Fintech Differentiators - Distinct, Not Extinct
Fintech Differentiators - “Distinct, Not Extinct” As of March 31, 2021 Balance 800 4 744.6 Hospitality and Gaming $ 584,887,746 > 2 $700 Payments Processing $ 89,078,392 $600 2 $500 Cryptocurrency S$ 49,823,597 z $400 Digital Savings $ 20,665,474 & $300 $200 $150.2 Other $ 166,816 $100 $57.1 | $ co
Slide 12: Fintech Investment Portfolio Performance
Fintech Investment Portfolio Performance $25,000 o/ ALLIED $20,000 €) siLLaGo- g Al Commerce 7 aspen Is Ventures £ $10,000 #4 FinClusive ~ &% interchecks $5,000 f payall $. $ Socure 2016 2017 2018 2019 2020 YTD 2021 A Stronghold Cash Investment Estimated Fair Value
Slide 13: Opportunistic Actions Have Further Enhanced Shareholder Value
Opportunistic Actions Have Further Enhanced Shareholder Value FDIC-Assisted MVB Mortgage Combination with Intercoastal Mortgage, LLC Sale of South Market, WV Banking Acquisition of The Centers 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 a ; ; Gaming Industry Growth Drivers Hospitality and Gaming Deposits a ry = Legalization: 28
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 < = : 4 6,000,000 customized, digital and compliant white- labeled financial services to their clients to £,000,000 . . 3,821,461 improve customer experie
Slide 18: 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 Three Months Ended Full Year 2021 March 31, 2021 (forecasted) National marketpl
Slide 19: Strength, Safety and Soundness
TINA WAVY, may \/\/\ DAALY Strength, Safety and Soundness
Slide 20: 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% ~~ 059% ’ S18 165% ao, ‘o'eont , = a N ioe ~~ TES 097 099% psy 0258 8 re 028% oats 16% - =~ 0.30% 0.88% 0.99% (0.88% 0.10% 0.25% 0.25% ery oss ae am 059% 058g gy 0.58% ons Oa a 012% 011% 07%
Slide 21: Diversified Loan Portfolio
Diversified Loan Portfolio Growth and Active Management of Concentration Limits Net Loans (includi ans of branches held for sale) an Portfolio Composition 450% SBA Paycheck z Protection 700% 2 Program Residential bes 11% 17% 350% % z i ‘Acquisition & Home Equity 300% 8 Development 2% \ S 7% \ 250% e
Slide 22: Bank Capital Position
Bank Capital Position Tangible Common Equity / Tangible Assets (%) @) 12.0% 11.5% a 0G 95% 9.8% she 10.9% 11.0% . zo% aay 8% 8.8% z 10.7% 8.0% 10.5% 10.2% so 2% too% 9.9% “ : 9.5% 4.0% 9.5% 2.0% 9.0% | 0.0% 8.5% 2015 2016 «= 2017,- «Ss «2018~S 2019 2020 1.2021 2015 2016 «= 2017,- «2018S 2019-2020. 1
Slide 23: 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 24: 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 25: Management, Board and Stock Ownership
TINA WAVY, may \/\/\ DAALY Management, Board and Stock Ownership
Slide 26: 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 27: 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 28: MVBF Stock Ownership
MVBF Stock Ownership Insider Holdings Reaffirm that We Believe in MVB! Top Holders as of March 31, 2021 Percent of Class Ownership Summ EJF Capital LLC 880K 7.6% The Vanguard Group, Inc. 506K AA% Insider BlackRock Institutional Trust Company, N.A. 506K 4.4% sei etai Wellington Management Company, LL
Slide 29: MVB's Tech-Forward Bank Peers
MVB’s Tech-Forward Bank Peers le contend Name Book Value (%) ‘Axos Financial, Inc. Digital Banking Coastal Financial Corporation ccB BaaS 2,029 371 252 16 Communities First Financial Corporation CFST Payments/SBA_ 957 129 182 8 First Internet Bancorp INBK — Tech-Forward/Digital Banking 4,189 352 104
Slide 30: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Tangible Common Equity / Tangible Assets (% in thousand: 2015 2016 2017 2019 Total stockholders’ equity $114,712 $ 145,625 $ 150,192 $ 176,773 $ 211,936 $ 239,483 $ 236,683 Total assets 1,384,476 1,418,804 1,524,202 1,750,969 1,944,114 2,381,476 2,646,089 Goodwill $