MVB Financial Corp (MVBF) Second Annual Centri Capital Conference summary

Business overview and strategy

• Operates in 40 states with a focus on fintech and legacy banking, emphasizing payments and digital gaming as key niches.

• Partners with major fintech and gaming companies, including Fiserv, Worldpay, DraftKings, and Credit Karma/Intuit, supporting 6 million clients and processing 66 million tax refunds annually.

• Maintains a branch-light model with seven branches, focusing on traditional CRE and C&I lending in its core region.

• Specialty lending and fintech lending are growth areas, including litigation finance and insurance partnerships.

• Stays below $10 billion in assets to benefit from Durbin Act fee advantages for clients.

Technology and innovation

• Significant investment in AI, reducing compliance and risk staff from 160 to 90 by deploying 32 digital workers, with plans to expand further.

• Developed proprietary technology through Edge Ventures, notably Victor, which was monetized via a partnership with Jack Henry, while retaining usage and shared revenue.

• AI and digital workers ("digies") are integrated across operations, with 175 licenses for Claude and plans to grow the AI engineering team.

• Edge Ventures is shifting focus to AI solutions for banks, leveraging internal models to reduce cost and risk.

Financial performance and growth drivers

• Key metrics are earnings per share, net interest margin, non-interest income, and non-interest expense.

• Net interest margin is improving due to lower deposit costs and higher loan yields, especially from specialty lending.

• Non-interest income is growing monthly, driven by a robust fintech pipeline with 52 clients.

• Non-interest expense remains flat despite growth, supported by operating leverage and AI efficiencies.

• Maintains 40% non-interest-bearing deposits, double the peer average, supporting EPS growth.