Mvb Financial Corp. · NASDAQ:MVBF
Mvb Financial — Investor Presentation (August 2018)
22 slides from Mvb Financial's investor presentation, Aug 17, 2018
Slide 1: Fundamental Banking with Blue Ocean Opportunities
INVESTOR PRESENTATION Fundamental Banking with Blue Ocean Opportunities August 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 headquartered in Fairmont, WV that provides banking and mortgage services to individuals and corporate clients in the Mid‐Atlantic region, and independent banking to corporate clients throughout the United States leveraging recent investments
Slide 4: Attractive Markets Accretive to MVB Franchise
Attractive Markets Accretive to MVB Franchise MVB core base is within 500 miles of 2/3 of the US Population • Five of the 10 wealthiest counties in the US are located in the Washington DC metro area, according to Forbes' 2017 rankings (1) • “Building for the future: West Virginia leads the nation in
Slide 5: MVB 3.0 = Think Bigger
MVB 3.0 = Think Bigger • Leaders, not followers • Implement strategic shifts which move us to blue oceans • Think beyond present market footprint ‐ Coast to Coast • Superior Growth: Assets, Net Income & Shareholder Value • Culture that attracts & retains quality talented teams • Be bankers, just don
Slide 6: MVB's Portfolio of Businesses
MVB’s Portfolio of Businesses Commercial Mortgage Retail Fintech 1. Loans 1. Non‐interest 1. Deposits 1. Deposits 2. Deposits Income 2. Interchange & 2. Non‐interest 3. Non‐interest 2. Loans Fee Income Income Income 3. Deposits 3. Small Business 3. Investment Loans Income 4. Consumer Loans Complemen
Slide 7: Strong Record of Organic Growth
Strong Record of Organic Growth $ in Millions Net Loans Held for Investment Total Assets $1,400 CAGR:CAGR 18% 18% CAGR 18% $1,204 $1,800 $1,685 $1,200 $1,096 $1,534 $1,044 $1,600 $1,024 $1,384 $1,419 $1,000 $1,400 $792 $1,200 $1,110 $800 $987 $617 $1,000 $600 $800 $727 $442 $371 $600 $533 $400 $292
Slide 8: Financial Highlights
Financial Highlights Diversified Blend of Commercial and Residential Lending 2018 Q2 Results $ in thousands, except per share FY 2016 FY 2017 2017 YTD 2018 YTD Balance Sheet . Gross loans HFI increased 5.0% from prior Total Assets $1,418,804 $1,534,302 $1,507,053 $1,685,419 quarter, 9.9% from year e
Slide 9: YoY Growth Highlights
YoY Growth Highlights From June 30, 2017 to June 30, 2018 Area Percent Increase Noninterest‐bearing Deposits 35.1% Service Fees 32.4% Net Interest Income 13.8% Equity 12.9% Loans 10.2% Continued Growth with Profitability Emphasis
Slide 10: Strategic Talent Acquisition
Strategic Talent Acquisition Have an Independent Bank Mindset that embraces the Yes, If Culture ACQUISITIONS PMG Acacia BB&T 2012 2013 2015 Wells Fargo Insurance Lift Out MVB Insurance 2013 Divestiture HNB Lift Out 23 Insurance Agents 2016 BB&T Lift Out 2009‐ 2011 Wash. First ‐ 2005 11 Team Members
Slide 11: Loan Portfolio
Loan Portfolio Diversified Blend of Commercial and Residential Lending Loan Portfolio Composition CRE Loans Hotels Apartments 13% Market Commercial 18% Real Estate Commercial 28% Apartments Business Low Income 35% 2% Other 2% Office 30% Acquisition & Nursing Homes Development 18% Consumer 7% 1% Acqu
Slide 12: NIM – Peer Comparison
NIM – Peer Comparison 4.20% 4.09% 4.00% 3.90% 3.79% 3.82% 3.80% 3.67% 3.60% 3.40% 3.38% 3.27% 3.22% 3.20% 3.07% 3.01% 3.00% 2014 2015 2016 2017 Q2 2018 MVBF Regional Peers Source: SEC filings and SNL Financial. Regional peers defined as public institutions headquartered in West Virginia, Maryland, V
Slide 13: Mortgage Volume Analysis
Mortgage Volume Analysis $ in Millions Historical Volume Comparison (1) 2018 Dollar Volume by State (1) $1,800 DC Other WV 5% 2% 6% $1,643 MD 6% $1,600 $1,541 $1,400 $1,339 NC/SC $1,200 32% VA 49% $1,012 $1,000 $838 (2) $770 2018 Dollar Volume by Transaction Type $800 $736 Refinance 10% $600 Constru
Slide 14: Retail Modernization
Retail Modernization • New Leadership & Commitment • Strategic locations for new Branch Banking Centers • Enhance Consumer Lending, Deposits & Fee Income • Traditional & Digital Average Total Deposits per Branch ‐ $83.4 Million (1) Source: Company documents. (1) Year‐to‐date average balance as of 06
Slide 15: Expanded Fintech Strategy
Expanded Fintech Strategy Includes the innovative “One Stop Payment Shop!” Keep Up Get Ahead 1. Offer Solutions to 3. Become Banking Strengthen Client Partner for Fintech Relationships Companies GOAL Increase Positive Exposure to Fintech Trends 2. Utilize Productivity 4. Make Investments in Enhancin
Slide 16: Fintech Differentiators – Distinct or Extinct
Fintech Differentiators – Distinct or Extinct NIB Growth Opportunity of $100MM+ through 2018 from our Network of Current Clients and Technology Partners Target Segments Companies that use technology to manage or move money Service Speed 1. Payments Processing ‐ Concierge Team ‐ Dedicated 2. Corporat
Slide 17: Investment Conclusions
Investment Conclusions Continue Firing on All Cylinders in 2018 Continue Quality Loan Improve Nurture the Talent Growth Deposit Mix Yes, If Culture Acquisition Reward Shareholders by Executing on MVBF’s Differentiated Plan
Slide 18: Thank You for Joining Us Today
Thank You for Joining Us Today Q&A Session “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.
Slide 19: 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
Slide 20: Appendix Materials
BN Appendix Materials 2&
Slide 21: Asset Quality Trends
Asset Quality Trends As of June 30, 2018 Non‐Performing Loans / Total Loans NCOs / Average Loans 3.50% 0.70% 0.60% 2.86% 2.92% 3.00% 0.60% 0.52% 2.50% 2.33% 2.24% 2.35% 0.50% 1.93% 0.40% 0.31% 2.00% 1.72% 0.42% 0.30% 0.22% 1.50% 1.35% 0.35% 0.18% 0.20% 0.25% 0.10% 0.12% 1.00% 1.16% 0.10% 0.17% 0.17%
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation NONINTEREST INCOME / OPERATING REVENUE For the year ended, For the 6months ended, (Dollars in Thousands) 12/31/2016 12/31/2017 06/30/2017 06/30/2018 Total Noninterest Income 43,205 40,706 20,391 19,834 Less: Realized Gain on Securities (1,082) (731) (350) (326) Operating Noni