Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (November 2018)
21 slides from Mvb Financial's investor presentation, Nov 2, 2018
Slide 1: Investor Presentation: Fundamental Banking with Blue Ocean Opportunities
INVESTOR PRESENTATION Fundamental Banking with Blue Ocean Opportunities November 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. Why MVB? Locations: 15 branches, 17 mortgage offices • Consistent growth NASDAQ: MVBF (1)
Slide 4: MVB's Portfolio of Businesses
MVB’s Portfolio of Businesses Commercial and Retail Fintech • 12 Branches in WV and 3 in NoVA • Corporate deposits and payments focus • 12 Commercial Lenders • Non‐interest Income • Commercial:Loans, Deposits, and Non‐interest • Investment Income Income • Dedicated team, including strong regulatory
Slide 5: Fintech Strategy Execution
Fintech Strategy Execution Keep Up Get Ahead 1. Offer Solutions to 3. Make Investments in Strengthen Client Fintech Companies Relationships GOAL Increase Positive Exposure to Fintech Trends 4. Become Banking 2. Utilize Productivity Partner for Fintech Enhancing Tools Companies MVB’s Broad Definition
Slide 6: Fintech Client & Investment Attributes
Fintech Client & Investment Attributes Market leader with sustainability Honor and prioritize compliance and regulation High barriers to entry Industries in sectors with large upside growth Strong balance sheet with predictable free cash flow Utilizing technology to change an established
Slide 7: Fintech Differentiators – Distinct Not Extinct
Fintech Differentiators – Distinct Not Extinct Opportunity in 2019 of $100M Growth Coming from Mix of NIB and Reasonably Priced IB Deposits Target Segments How We Grow & Portfolio Mix • Insiders to Fintech industry clients and technology partners • Robust pipeline • Highly skilled & non‐traditional
Slide 8: NIM Expansion - Outpacing Peers
NIM Expansion - Outpacing Peers Four years of NIM expansion to continue with 10bp expansion in coming year 4.20% 4.09% 4.00% 3.90% 3.82% 3.79% 3.80% 3.69% 3.60% 108 bp 26 bp 3.53% 3.43% 3.40% Projected 3.27% YE 2019 3.22% 3.20% 3.07% 3.01% 3.00% 2014 2015 2016 2017 Q3 2018 MVBF Regional Peers Source
Slide 9: Projected Deposit Growth with NIB Focus
Projected Deposit Growth with NIB Focus YE 2019 20% $1,195,257 $1,200,000 $1,121,580 18% $1,092,507 17.46% 16% $1,000,000 $921,924 14% $771,004 $800,000 12% Deposits thousands in NIB/Total Deposits Total 10% of $600,000 8.15% % Balance a 8% as $400,000 NIB Average 6% 4% $200,000 2% $‐ 0% 2014 2015 2
Slide 10: Strong Record of Organic Growth
Strong Record of Organic Growth $ in Millions Total Assets September 30, 2018 YoY Growth Highlights $2,000 CAGR 18% $1,723 $1,534 Area Percent Increase $1,500 $1,384 $1,419 $1,110 Noninterest‐bearing Deposits 98.2% $987 $1,000 $727 $533 Service Fees 32.6% $500 $414 Loans 18.5% $0 Net Interest Income
Slide 11: Financial Highlights 2018 Q3 Results
Financial Highlights 2018 Q3 Results $ in thousands, except per share FY 2016 FY 2017 2017 YTD 2018 YTD Balance Sheet • Gross loans HFI increased 6.7% from prior Total Assets $1,418,804 $1,534,302 $1,471,590 $1,723,104 quarter, 17.2% from year end, and 18.5% Gross Loans HFI $1,052,865 $1,105,941 $1,
Slide 12: Loan Portfolio
Loan Portfolio Diversified Blend of Commercial and Residential Lending Net Loans Held for Investment Loan Portfolio Composition $1,400 CAGR 18% 450% $1,285 CRE % 400% $1,200 Commercial Capital $1,096 Real Estate $1,044 350% Commercial $1,024 Business 29% Based $1,000 ‐ 33% 300% Risk $792 $800 Total
Slide 13: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Diversification within CRE concentration CRE Loans AD&C Loans Office Commercial Nursing Homes 26% Development 6% Hotels 13% Office Apartments & 12% 4% Multifamily Personal Lot Loans 5% 3% Residential ‐ Speculative 6% Apartments Residential Market Development Retail 1
Slide 14: Asset Quality Trends
Asset Quality Trends Non‐Performing Loans / Total Loans NCOs / Average Loans 3.40% 0.65% 0.60% 2.86% 2.92% 2.90% 0.55% 0.52% 2.33% 2.35% 2.40% 2.24% 0.45% 1.93% 1.90% 0.35% 0.42% 0.31% 1.47% 0.35% 1.35% 0.22% 1.40% 0.25% 0.18% 0.25% 0.90% 1.16% 0.15% 0.10% 0.12% 0.88% 0.99% 0.88% 0.99% 0.17% 0.17% 0
Slide 15: Retail Modernization
Retail Modernization Channel diversity • New leadership and commitment • Strategic locations for new Branch Banking Centers • Enhance consumer lending, deposits, and fee income • Mix of traditional and digital • Branch “lite” strategy Average Total Deposits per Branch ‐ $85.8 Million (1) Source: Com
Slide 16: Mortgage Volume Analysis
Mortgage Volume Analysis $ in Millions Historical Volume Comparison (1) 2018 Dollar Volume by State (1) $1,800 DC Other WV 6% 3% 7% $1,643 MD $1,600 $1,541 6% $1,400 $1,339 $1,200 $1,168 VA NC/SC $1,107 46% 32% $1,012 $1,000 $838 $800 2018 Dollar Volume by Transaction Type (2) Refinance $600 9% Cons
Slide 17: Strategic Talent Acquisition
Strategic Talent Acquisition An Independent Bank Mindset that embraces a “Yes, if” Culture PMG Acacia BB&T Branches Acquisitions 2012 2013 2015 Wells Fargo Recent NOVA M&A BB&T Insurance 2013 Disruption 2005 2017/2018 12 Team Members 23 Insurance Agents Lift Outs Sold in 2016 12 Team Members HNB VA
Slide 18: Addressing Risk Management
Addressing Risk Management Cost of investing in the future and scalability Risk Mitigation Mortgage Volatility Diversified geographic portfolio Overhead management Retail partnership High quality loans Purchased loan focus CRE Concentration History of strong asset quality Management and monitoring o
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., June 2018 upon inclusion in Russell 2000 Index 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 9months ended, (Dollars in Thousands) 12/31/2016 12/31/2017 09/30/2017 09/30/2018 Total Noninterest Income 43,205 40,706 30,549 30,345 Less: Realized Gain on Securities (1,082) (731) (455) (327) 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 New Reston, VA Banking Office - Opened 2018
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