Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Shareholder Meeting (April 2024)
22 slides from Potomac Bancshares's shareholder meeting presentation, Apr 23, 2024
Slide 1: Annual Report April 23, 2024
2°23 ANNUAL REPORT April 23, 2024 POTOMAC a" BANCSHARES
Slide 2: A Warning about Forward-Looking Information
A Warning about Forward-Looking Information This presentation contains statements that are based on other than historical data and that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts
Slide 3: Vision and Purpose
Vision , Purpose Simplify our Clients’ Financial Lives 3
Slide 4: Core Values
Core Values Work in authentic, We are accountable to Provide opportunities Being in the moment, We live our founding trustworthy ways to do the each other to be a for our colleagues to fully engaged and principle, “neighbors right thing every time, in collective WE, feel well-prepared, listening to
Slide 5: Growth
Growth All Employees Are Shareholders 23 Promotions during 2023 Certification Programs Drive Career Growth Employee Engagement Teams i.e. Diversity & Inclusion Committee, Wellness Committee 5
Slide 6: Community Commitment
Community Commitment 2023 Community Commitment Third Annual Pack the ‘Pack raised $65,000 $100,000 supported Nonprofits whose mission is Focused on food insecurity 1,167 Hours of Community Service supporting 35 local nonprofits 6
Slide 7: Technology Investments for the Future
Technology Investments for the Future • Adds value to the client - Simplifies the financial life - Ease of use - Saves client money • Engage local businesses with Purchase Rewards program • Strengthened our network Debit Card Controls infrastructure with Information As A Service (IaaS) contract 7
Slide 8: Future of Fintech Investing
Future of Fintech Investing • Six-year involvement in the ICBA ThinkTech program • Selection Committee exposure • In-depth demos/coaching • Anchor investment in BankTech Venture Fund • Access to Fintech ecosystem • Cash calls to date = $235,000 • Current valuation = $282,000 • Direct investment in K
Slide 9: Awards and Recognition
Awards and Recognition 31 consecutive quarters 9
Slide 10: Financial Review
Financial Review 3 POTOMAC = BANCSHARES
Slide 11: Balance Sheet Growth
Balance Sheet Growth (in thousands) In thousands $900,000 $830,714 $800,000 $739,680 $700,000 $651,360 $620,912 $600,000 $548,542 $500,000 $447,386 $400,000 $300,000 $200,000 $100,000 $0 Loans Deposits Total Assets 2020 2021 2022 2023 11
Slide 12: Net Income
Net Income (in thousands) Strategic expansion initiatives began July 2018 In thousands $8,000 $7,000 $6,000 $5,000 $4,000 7,264 6,785 $3,000 5,943 $2,000 3,392 2,930 3,213 $1,000 $0 2018 2019 2020 2021 2022 2023 Core PPP 12
Slide 13: Rewarding Shareholders with Dividends and Total Return
Rewarding Shareholders with Dividends and Total Return $2.00 $1.83 $1.77 $1.75 $1.80 $1.60 $1.40 $1.20 $1.00 $0.92 $0.78 $0.80 Announced 20% increase on April 16, 2024 $0.60 $0.35 $0.38 $.12 per share $0.40 $0.28 $0.28 $0.31 $0.20 For shareholders of record May 3, 2024 $0.00 2019 2020 2021 2022 2023
Slide 14: Strong Capital Position
Strong Capital Position 16.00% Bank only 13.97% 14.00% 12.89% 12.89% 12.00% PTBS Only 9.77% 10.00% 10.00% 8.00% 8.05% 8.00% 6.50% 6.00% 5.00% 4.00% 2.00% 0.00% Tier 1 to Average Assets Tier 1 to Risk Weighted Assets CET 1 to Risk Weighted Assets Total Capital to Risk Weighted Assets TCE/TCATCE/TCA R
Slide 15: What is Next?
What is Next? Strategic Initiatives for Next 3 Years 15
Slide 16: Investing in Our Future – Current Footprint
Investing in Our Future – Current Footprint • Garner significant market share in Berkeley County moving BCT as the predominant locally owned community bank • Garner improved market share in Loudoun County moving BCT within top 10 banks in Loudoun County • Become a known leader for small business ban
Slide 17: Investing in Our Future – Geographically
Investing in Our Future – Geographically • Launch Government Contract Banking while expanding market presence to Fairfax County • Expand our BCT Wealth and Investment services into Virginia 17
Slide 18: Investing in Our Future – People
Investing in Our Future – People • Be an employer of choice where colleagues embody the culture of a “collective WE made up of responsible ME’s accountable to each other” 18
Slide 19: Investing in Our Future – Technology
Investing in Our Future – Technology • Upgrade our core operating systems to support new business lines 19
Slide 20: Thank you for your continued support
Thank you for your continued support
Slide 21: Government Contract Banking – WV & MD
Government Contract Banking – WV & MD Federal Procurement Dollars Awarded in Contracts $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Berkeley County Jefferson County Washington County 2021 $18,661,083 $30,768,743 $48,561,891 2022 $17,059,793 $32,511,257 $37,834,581 2023
Slide 22: Government Contract Banking – Virginia
Government Contract Banking – Virginia Federal Procurement Dollars Awarded in Contracts $80,000,000,000 $70,000,000,000 $60,000,000,000 $50,000,000,000 $40,000,000,000 $30,000,000,000 $20,000,000,000 $10,000,000,000 $0 2021 2022 2023 YTD Loudoun $5,548,856,495 $6,504,167,773 4571842639 Fairfax $65,9
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