Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Sandler O'Neill 2017 East Coast Financial Services Conference
22 slides from Mvb Financial's conference presentation, Nov 15, 2017
Slide 1: Sandler O'Neill 2017 East Coast Financial Services Conference
Larry F. Mazza, CEO & President Donald T. Robinson, Executive Vice President & CFO Sandler O'Neill - 2017 East Coast Financial Services Conference November 16, 2017 Exhibit 99.1
Slide 2: Disclaimers
2 DISCLAIMERS Forward Looking Statements MVB Financial Corp. 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. These forward-looking statements ar
Slide 3: The MVB Team's goal today is to...
3 The MVB Team's goal today is to... • Share the MVB growth story – Past, Present, Future • Provide our vision of profitable community banking • Explain why we believe we are an "up-and-comer" in our industry Exhibit 99.1
Slide 4: MVB Overview
4 MVB Overview • MVB Financial Corp. ◦ Total Assets: $1.5 billion ◦ 15 branches, 18 mortgage offices, and a central operations center ◦ Two operating companies (MVB Bank and MVB Mortgage) ◦ Divested MVB Insurance as of June 30, 2016 ◦ Strong fee income streams ▪ Mortgage: $28.6 million ◦ 21% loan an
Slide 5: Value of Growth
5 Value of Growth $750M - $1.5B 34 public banks / 38 total banks P / TBV: 1.43x P / EPS: 15.8x Sca rcity Valu e Target vision and valuation Source: SNL Financial. Market data as of 8/9/2017. Note: Peer groups include publicly traded banks headquartered in PA, VA, WV, and MD. Multiples represent medi
Slide 6: Our Growth Strategies
6 Our Growth Strategies Organic Growth Opportunistic Growth Fee Income Streams • Increase the productivity of existing relationships • Enhance existing geographic footprint • Measure expansion into new geographies • Enhance profitability through improved core funding • Explore potential acquisitions
Slide 7: Demographics Accretive to MVB Franchise
7 Demographics Accretive to MVB Franchise Est. Household Income Growth ('18-'23) Source: SNL Financial, United States Bureau of Labor Statistics, West Virginia Chamber of Commerce. MVBF current franchise deposits weighted by county. (1) Washington Business Journal, 7/17/17 (2) PR Newswire, 11/9/17 8
Slide 8: Targeting Attractive Markets
8 Targeting Attractive Markets East Region: Washington D.C. Metropolitan Area Central WV Region: Morgantown, Fairmont, Bridgeport, & Clarksburg South Region: Charleston, WV • 6.2 million people, high-growth, median HHI >$99,400, and 3.7% unemployment(1) • Leverages MVB Mortgage in Northern Virginia
Slide 9: Acquisition of Talent
9 Acquisition of Talent 2009 2018 2020 BB&T L/O (2005)-12 HNB L/O (2009)-4 (2011)-7 Wells Fargo Insurance L/O (2013)-23 VA Commerce L/O (2013)-5 Middleburg L/O (2017)-4 PMG (2012) Acacia (2013) BB&T (2015) MVB Insurance Divestiture (2016) Acquisition Exhibit 99.1
Slide 10: Experienced Management Team
10 • CEO – MVB Mortgage • 25 years of mortgage experience • Co-founded Potomac Mortgage Group, Inc. (PMG) in 2009 • Chief Lending Officer • 30+ years of experience • Chair of Management Loan Committee Experienced Management Team Larry Mazza, Chief Executive Officer Don Robinson, Chief Financial Offi
Slide 11: Strong Record of Organic Growth
11 Strong Record of Organic Growth Total Assets ($M)Net Loans HFI ($M) Net Income to Common ($M)Total Deposits ($M) $1,500 $1,200 $900 $600 $300 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017 $201 $231 $292 $371 $442 $617 $792 $1,024 $1,044 $1,085 $1,875 $1,500 $1,125 $750 $375 $0 2008 2009
Slide 12: Selective and Strategic M&A Growth
12 Selective and Strategic M&A Growth M&A Assessment Model Asset Quality Drives Shareholder Value Additional Growth Potential Deposits Attractive Geographic Markets Talent & New Expertise Cultural Fit • Conducting Disciplined Deal-making: M&A deals will be rooted in a reasonable transaction price –
Slide 13: Recent MVB Bank Notable Events
13 Recent MVB Bank Notable Events • Applied to list common stock on the Nasdaq Capital Market • Opened two new, technology-focused branch locations, with automated interactive systems ◦ Morgantown, WV ◦ Leesburg, VA • Core conversion to Jack Henry & Associates completed in April 2017 Leesburg, VA AI
Slide 14: Third Quarter Financial Highlights
14 Third Quarter Financial Highlights 2017 YTD Financial Highlights • Gross loans HFI increased 4% from year end, while reducing commercial real estate concentration levels from 373% at 9/30/16 to 311% at 9/30/17 • Deposits increased 3% YoY • Nearly 15% of YoY deposit growth from noninterest bearing
Slide 15: Current Loan Portfolio
15 Current Loan Portfolio CRE LoansLoan Portfolio Composition Commercial Business: 33.4% Commercial Real Estate: 27.2% Acquisition & Development: 8.6% Acquisition & Development - HVCRE: 2.4% Residential: 21.4% Home Equity: 5.9% Consumer: 1.2% ($ in thousands) As of 9/30/2017 Amount Commercial Busine
Slide 16: Strong Asset Quality
16 Strong Asset Quality Nonperforming Assets ($000) NPAs / Assets Nonaccrual OREO 90+ Days Past Due $16,000 $12,000 $8,000 $4,000 $0 2011 2012 2013 2014 2015 2016 Q3 2017 $6,643 $7,946 $3,452 $3,661 $1,224 $9,830 $10,492 MVBF Regional Peers 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2011 2012 2013 2014 2015 2016
Slide 17: Current Deposit Portfolio
17 Current Deposit Portfolio Non-Time Deposits ($M)Deposit Composition(1) ($M) Source: SEC filings. (1) Based on Q3 2017 average balances. Interest bearing demand: 39.3% Noninterest bearing demand: 10.4% Savings and money markets: 26.4% Time deposits including CDs and IRAs: 24.0% Q3 2017 Cost of Dep
Slide 18: MVB Mortgage Volume Analysis
18 MVB Mortgage Volume Analysis 2017 YTD Dollar Volume by State(1)Historical Volume Comparison(1) ($M) 2017 YTD Volume by Transaction Type(2) Source: Company documents. YTD totals as of September 30. (1) Volume displayed by dollars closed. (2) Volume displayed by number of loans closed. 2013 2014 20
Slide 19: Investing in Our Communities
19 • Strong community engagement with those we serve • Community Reinvestment Act (CRA) focus – sponsorship and outreach • Annual Team MVB Cares Week in all markets accents MVB's year-round commitment Investing in Our Communities Habitat for Humanity in Monongalia County, WV 'Sledgehammer Ceremony'
Slide 20: Investment Thesis
20 Investment Thesis Value of s cale and s ca rcit y Opportunity for immediate performance improvement Excellent team in excellent markets Proven track record of capitalizing on market disruption Exhibit 99.1
Slide 21: Thank You
21 Thank You IR.MVBbanking.com 844-MVB-BANK Question and Answer Session Exhibit 99.1
Slide 22: Non-GAAP Reconciliation
22 Non-GAAP Reconciliation NONINTEREST INCOME / OPERATING REVENUE At or for the year ended, At or for the 9 months ended, (Dollars in Thousands) 12/31/2015 12/31/2016 9/30/2016 9/30/2017 Total Noninterest Income 34,955 43,205 33,139 30,549 Less: Realized Gain on Securities (130) (1,082) (1,082) (455
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