Mvb Financial Corp. · NASDAQ:MVBF

Mvb Financial — Q2 2023 Earnings Presentation

25 slides from Mvb Financial's earnings presentation, Aug 3, 2023

  1. Slide 1: Investor Presentation Q2 2023

    INVESTOR PRESENTATION Q 2 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

  2. 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

  3. 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

  4. Slide 4: MVB's Strategy on a Page (SOAP)

    4 Trust Commitment TeamworkRespect, Love & Caring Adaptive Our Why To positively impact the financial lives of 1 billion people, one life at a time Purpose Trusted partners on the financial frontier, committed to your success Grand Cashless Casino Strategic M&A Enterprise Risk Management Talent & Cu

  5. Slide 5: Q2 2023 Key Highlights

    5 Q2 2023 Key Highlights Source: Company documents and SEC Filings. • Balance sheet loans to deposit ratio of 78.1% • Off-balance sheet deposits increased to $1.1 billion • CRE concentration of 217% of total-risk based capital • MVB Bank’s Total Risk-Based Capital Ratio was 14.9% • Tangible book val

  6. Slide 6: Continued Growth of Deposit Base

    6Source: Company documents and SEC Filings $986 $1,267 $1,257 $1,339 $1,971 $279 $716 $1,120 $1,232 $988 $92 $295 $483 $724 $1,062 2019 2020 2021 2022 YTD 2023 Total Interest-bearing deposits Total Noninterest-bearing deposits Off Balance Sheet On Balance Sheet: NIB/Total Deposits 22% On Balance She

  7. Slide 7: Deposit Composition

    7 Deposit Composition Source of Deposits CoRe* 64% Fintech 36% Title (C) 6% Speciality (C) 6% Retail (C) 11% Commercial (C) 33% Public Funds (C) 8% Gaming (F) 12% Digital Assets (F) 7% Payments (F) 8% BaaS (F) 9% Deposits Breakdown – 06/30/2023 Source: Company documents and SEC Filings. *Commercial

  8. Slide 8: Ability to Adapt Loan Growth

    8 Ability to Adapt Loan Growth $1,096 $1,293 $1,375 $1,428 $1,852 $2,349 $2,282 $- $500 $1,000 $1,500 $2,000 $2,500 2017 2018 2019 2020 2021 2022 YTD 2023 Net Loans ($ Millions) 14% CAGR Source: Company documents and SEC Filings.

  9. Slide 9: Loan Portfolio Composition

    9 Loan Portfolio Composition Portfolio by Industry Source: Company Documents. *2.9% of MVB’s total loans were non-owner-occupied office space. Commercial Business 36.6% Commercial Real Estate 26.7% Acquisition & Development 4.6% Home Equity 0.7% Residential 29.2% Consumer 2.2% Other 22.7% Office Spa

  10. Slide 10: Credit Quality

    10 Credit Quality

  11. Slide 11: Consistent, Top Tier Asset Quality Through Cycles

    11 0.37% 0.94% 0.95% 0.47% 0.59% 0.87% 0.94% 0.64% 0.48% 0.59% -0.40% 0.30% 1.00% 1.70% 2019 2020 2021 2022 YTD 2023 MVBF Peers Non-Performing Loans / Total Loans 0.07% 0.14% 0.08% 0.36% 0.25% 0.08% 0.08% 0.04% 0.05% 0.24% 0 0.001 0.002 0.003 0.004 2019 2020 2021 2022 YTD 2023 MVBF - Auto MVBF - Non

  12. Slide 12: Non-Performing Loans

    12 Non-Performing Loans Source: Company Documents. All data as of June 30, 2023. By Loan Type Commercial NPLs – by Industry Energy $ 4,473,933 Office $ 1,512,016 Government $ 1,691,392 Other $ 3,123,432 Consumer Auto 7.5% HELOC 1.2% Commercial 79.1% Residential Mtg 12.2% Total Non-Performing Loans:

  13. Slide 13: Gaming Industry Overview

    13 Gaming Industry Overview

  14. Slide 14: Sports Betting Anticipated Market Adoption Waves

    14 Sports Betting Anticipated Market Adoption Waves • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level An anticipated 88% of the U.S. adult population will have access to regulated sports betting by 2026(1), expanding the potential for the market that produc

  15. Slide 15: US Sports Betting Gross Gaming Revenue Outlook

    15 US Sports Betting Gross Gaming Revenue (GGR) Outlook Source: 1 – EKG’s U.S Sports Betting Market Monitor | July 2023 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

  16. Slide 16: U.S. Online Casino – Market Landscape

    16 U.S. Online Casino – Market Landscape Source: U.S. Online Casino Monitor | July 2023; EKG’s All States Est. Online Casino GGR By Brand | June 2023; EKG’s All States Est. Online Sports Betting GGR By Brand | May 2023 Operational Authorized But Not Yet Operational 2023 YTD GGR Totals by Online Segm

  17. Slide 17: Growth of Payment Income

    17 Growth of Payment Income

  18. Slide 18: Payment card and non-interest income growth

    18 Source: Company Documents. ICM is Intercoastal Mortgage Company, LLC. Six Months Ended June 30, 2023 June 30, 2022 Growth ($) Growth (%) Payment card and service charge income: Card acquiring income $ 1,410 $1,733 ($323) (18.6%) Service charges on deposits 2,186 1,845 $341 18.5% Interchange incom

  19. Slide 19: Backer of Fintech

    19 Backer of Fintech

  20. Slide 20: Investments Focused on Strategic Partnerships

    20 $- $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 YTD 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

  21. Slide 21: Capital Strength

    21 Capital Strength

  22. Slide 22: Bank Capital Position

    22 8.1% 8.7% 9.5% 9.8% 9.6% 8.3% 8.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2017 2018 2019 2020 2021 2022 YTD 2023 Tangible Common Equity / Tangible Assets (%) (1) 10.7% 10.2% 9.9% 11.0% 11.6% 9.8% 10.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 2017 2018 2019 2020 2021 2022 YTD 2023 Tier 1/Commun

  23. Slide 23: Our Awards & Accolades

    Our Awards & Accolades Great [RNUHCNIN Sim | ; ——— f Place § Best Banks ky i ‘ «i to Work For BEST ork. IN FINANCIAL Certified P -BAI Quartz &INSURANCE™ NOV 2021-NOV 2022 Sy INNOUATION EMPLOYER MEMBER i Onze, 7. I~ (( THE SMARTER RANKING BANKING. oDiersnyiee ?) BANK TECHNOLOGY THE BEST BANKS AWARD z

  24. Slide 24: Caution Flag Mitigation

    24 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 • Investment in team through Chartwell and Paladin acquisitions • Technical expertise and experi

  25. 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 YTD 2023 Total stockholders’ equity $ 150,192 $ 176,773 $ 211,936 $ 239,483 $ 274,328 $ 261,084 $ 274,349 Total assets 1,534,302 1,750,969 1,944,114 2,331,476 2,792,449 3,06

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