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

Business overview and strategy

• Operates in 40 states with a focus on fintech, payments, and digital gaming, alongside a legacy banking segment with traditional lending and deposit gathering.

• Key fintech activities include partnerships with major payment processors and digital gaming companies, as well as Banking as a Service for large clients like Credit Karma and Intuit.

• Maintains under $10 billion in assets to benefit from Durbin Act fee structures, supporting long-term fintech relationships.

• Specialty lending is a growth area, targeting underserved commercial markets with lower risk and higher yields.

• Peer group includes specialty banks focused on payments and Banking as a Service, such as The Bancorp, Pathward, and Coastal Bank.

Growth drivers and financial outlook

• Regulatory environment has shifted since January 2025, prompting significant investment in AI to enhance compliance and operational efficiency.

• AI adoption reduced compliance and risk staff from 160 to 90, with 32 digital workers ("digies") now in place and plans for further expansion.

• Strong pipeline in fintech payments and specialty lending expected to drive deposit and non-interest income growth over the next several years.

• Maintains 40% non-interest-bearing deposits, double the peer average, supporting earnings per share (EPS) growth.

• Key metrics tracked are EPS, net interest margin, non-interest income, and non-interest expense, all showing positive trends.

Innovation and partnerships

• Uses a proprietary client evaluation system (REVO) to assess risk, opportunity, and value in partnerships.

• Edge Ventures subsidiary incubates fintech innovations; successful exit of Victor (API and compliance tech) to Jack Henry, with ongoing collaboration.

• Next phase for Edge Ventures focuses on AI solutions for banks, leveraging internal expertise and external partnerships.

• No plans to monetize client data due to regulatory and contractual commitments.