MVB Financial Corp. Common Stock Small-Cap Virtual Conference

Hey, Brendan. Thank you very much, and thanks for inviting us to the conference. It has been great today and yesterday, so appreciate the opportunity. As Brendan said, I am Larry Mazza. I am CEO of MVB. Happy and honored to present with my partner here, Mike Sums, who is our CFO. I will do around 10 minutes of the intro. Mike will get into more details of the financials, and then we will have about 10 minutes for Q&A. Just so you know how we are going to run through this. A quick background on myself. CPA, worked with KPMG. Out of KPMG, went into a bank where, at 29, I became CEO and then eventually merged with Truist. I spent a while with Truist, which was then BB&T, and then in 2005, went over to MVB as part of what I will call the founder succession plan. I was not the founder of MVB.

Came in at around $120 million in assets. Today, as you will see on this next slide, that gives you a good idea of who we are. You are looking at about $3.5 billion in assets, $2.5 billion in loans, $3.1 billion in deposits, and a strong 51.6% revenue growth, which we will talk about. When you look at MVB, you are really looking at a two-part story. We call ourselves really the quiet company that is fueling fintechs. You will see, one, a legacy bank, which I will talk about briefly when I get to our strategy on a page, and then you will also see a fintech-driven technology company really that fuels fintechs, that is really part of our growth story. So it is a balanced two-pronged approach to where we are. On the next slide, what you will see is some of our strategies, which I will get into more of these investment highlights.

Really what are the catalysts that would drive an investor to invest in MVB. The next slide starts to get into our strategy on a page. If you want to know everything about MVB in a snapshot, one page, folk, this is what we call our SOAP. Again, strategy on a page. Our purpose is to be trusted partners on the financial frontier committed to your success. So that purpose has three pieces to it, trusted partnerships, the financial frontier, and a commitment to success. We back up that purpose statement. It is not only words on a page, but we back it up with our values, and then we look at these values as we talk to every one of our teammates in our reviews and our feedback to each other. But the first three values tie to trusted partnerships.

When you got on this call today and you saw me pop up, you ask yourself subconsciously three questions. Can I trust this guy? Does he care? Is he committed? You are putting your assets or your client's assets to work in potentially MVB stock, and that is our first three values. We call it love, trust, and commitment. It is not the love that you have for your spouse or your kids or something like that. It is the caring love. It is what they call the agape friendship type love and caring. Then we have the trust that solidifies all relationships, and then the commitment to be the best that we can be every day. That is trusted partnerships and how we live it in values. The second part that we talk about is the financial frontier, and that is adaptivity.

Charles Darwin said it best, "It is not the strongest of a species that survives, it is the most adaptable of the species that survives." We have been adapting since 2016. That is when we did our white paper on fintech and a transition to not only to be a traditional legacy-type bank with commercial lending and mortgage lending and branches, but also to drive and fuel the operations of fintech because every fintech needs a bank. The last piece and the last value of teamwork drives through commitment of success. When we talk about your success, we are talking about our investors, we are talking about our teammates, we are talking about our communities, and importantly, our clients. We have those four constituencies. Just like it takes a village to raise a child, it takes a teamwork to help for those four constituencies to be successful. So that is our purpose and values.

Then you look at the four lanes that we play in. The first lane that we play in is what I talked about earlier, our first prong. The next three prongs will go to fintech, but the first prong is our legacy bank, and our legacy bank includes things like commercial lending. We do CRE-type lending, commercial real estate, C&I, commercial industrial. We do mortgage lending. We do litigation finance type lending is our specialty lending prong and do lending of that source. We are conservative lenders. We are regional lenders, and that is how we deploy our assets. Then you look at the next three lanes that we talk about, and these are the three fintech lanes, and this is where really the growth comes in both non-interest income or even drives our deposits, and a lot of those are low-cost, even non-interest-bearing deposits.

We have one of the highest non-interest-bearing deposits in the industry at nearly 35% of all of our deposits are non-interest-bearing, which is very solid compared to any peer group that we were in. It is the second lane, but the first of the fintechs is to be the bankers of choice of fintech. In this lane, you will see critical areas that we represent. One is the payments vertical, where we do payments for acquiring, issuing for companies like PayPal. We work with Fiserv, we work with Worldpay, we work with large companies like that to process their payments. Very important to us. A multi-trillion-dollar business. We have our small part of it, and it is very powerful. You will also see under the bankers of choice of fintech is our banking as a service.

There you will see one of our largest clients, which shows you our ability to handle scale, is Credit Karma, who is, of course, owned by Intuit. Not only do we do Credit Karma savings and cash, which we had nearly 6 million relationships of both savings and checking. It shows you the ability for us to do scale with fintechs, which makes us one of the largest banks in the country as far as number of accounts. Not in assets or liabilities, but number of accounts. We have a lot of volume that we throughput, and we will talk about how we look at risk and compliance for that, which we honor that. I told you at the top of the call, I am a CPA. I honor audit, I honor risk, I honor compliance.

I will show you a very strong platform that we use to manage that vertical of banking as a service. The next thing that we have in the bankers of choice is our gaming vertical. We were one of the first banks that got into digital gaming. When I am talking about digital gaming, you are probably familiar with names like DraftKings, FanDuel, BetMGM. We have 38 digital banking clients. We were one of the first banks in the daily fantasy sports as well as other than sports betting, et cetera. We, again, had to have a strong infrastructure of compliance and risk, which we have done a heck of a job in. There were 22 fintech banks that in 2022 to 2024 that had consent orders. We knock on wood, and thank God we never had one of those consent orders. It is also by choice.

What I mean by choice is that we choose to be compliant. We choose to build the infrastructure. We spent $22 million in that infrastructure, and I will show you how it has paid off in later slides, but it has been a good choice. Those are some of the lines of business that we have in what we call the bankers of choice of fintechs, and that helps you understand that. The builders of fintech are, we have built companies like Victor. We started it on a back of a napkin, and four and a half years later, we had a heck of a company that had API connections because we believe APIs are now table stakes. A lot of banks do not have API connections. We built that early on. It is one of our high choices of products for clients.

We also had Victor build ledgering as well as some compliance skills. That was so successful, Jack Henry, a large-cap bank core processor, wanted to buy Victor off of us. They were our core processor. It was like sending your kids to college, and we did. We went from 17 developers that we had that built that technology, to 2,000 developers that Jack Henry has to help that grow along. Victor has been doing great for the last year under Jack Henry's tutelage. We still use them, we still share profits with them, and it is still a great software for MVB, just with a lot more firepower behind it after we got it started. The last one is backers of fintech. This is where we invest in fintech. We have a great insight to a number of fintechs.

We have a fintech portfolio that has somewhere between 15 plus fintechs that we have invested in. I'd say about 95% of those fintechs actually do business with us. We make money in two ways on that backers of fintech or investors of fintech. One is on the growth of the investment, which you'll see in this second quarter results. One of our fintechs had a liquidity event that helped us have a gain. We also make money off of doing business with them. We have great business relationships and do business with fintechs and make money off of that as well. Following the qualifying track and the fast track are a lot of what I've talked about already. I'll jump to the next slide. This is our team, one of the best teams pound for pound in the country.

You'll see people like Mike Sums coming, an i-banker out of Raymond James is our CFO, Jeremy Kuiper, who worked with The Bancorp and with Pathward, two of the really best banks in the country in payments. Jeremy was president of The Bancorp's Fintech division. Led them for 15 years to be really to the position they are today. You have Joe Rodriguez, who's our Chief Legal, part of the DOJ, CFPB, in a large law firm as well, coming out of Capital One to us. Julie O'Connor, one of the best of the best in compliance, coming out of Fintech and banking, CPA as well. Mike Giorgio, our CIO and COO, a great tech guy coming out of banking and digital assets.