WashingtonFirst Bankshares Inc
WashingtonFirst Bankshares — Investor Presentation (February 2017)
37 slides from WashingtonFirst Bankshares's investor presentation, Feb 10, 2017
Slide 1: Investor Presentation February 2017
NASDAQ: WFBI www.wfbi.com Investor Presentation February 2017
Slide 2: Disclaimer
Disclaimer | 1 WashingtonFirst Bankshares, Inc. and its subsidiaries (the “Company”) make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include: statements of goals, intentions, earnings expectations, and other expectati
Slide 3: Company Overview
Company Overview | 2 • Full service commercial bank founded in 2004, headquartered in Reston, VA, with 19 branches in the Washington, DC metro area • Excellent market position as the 4th largest bank headquartered in the Washington, DC metro area* • $2.0 billion in total assets as of December 31, 20
Slide 4: Exceptional Market
Exceptional Market | 3 Source: SNL Financial 1 Deposit data as of 06/30/16, updated annually from FDIC SOD 2 As of February 2017; data set excludes MSAs with populations less than 2 million Rank Rank Institution Branches ($mm) (%) 1 Bank of America Corp. 31 15,425,467 23.1 2 SunTrust Banks Inc. 38 1
Slide 5: Our Strategy
Our Strategy | 4 WashingtonFirst seeks to capitalize on market opportunities while maintaining disciplined and conservative credit underwriting that has been the cornerstone of our past profitability. Opportunity Organic Growth Focus on relationships Enhance existing footprint Hire seasoned le
Slide 6: Senior Leadership Overview
Senior Leadership Overview | 5 • Longevity amongst experienced, diverse management team • Significant experience and impressive track record in community banking, acquisitions, and creation of franchise value • Well-connected in the Washington DC metro business community • Excellent regulatory relat
Slide 7: Financial Highlights
Financial Highlights | 6 (Dollars in Thousands) At or for the year ended, '12-'16 Quarter Ended, Except per share data 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 CAGR 06/30/16 9/30/16 12/31/16 Balance Sheet Total Assets $ 1,147,818 $ 1,127,559 $ 1,333,390 $ 1,674,466 $ 2,002,911 14.9% $ 1,853,666
Slide 8: Consistent Balance Sheet Growth
$1,148 $1,128 $1,335 $1,674 $2,003 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 2012 2013 2014 2015 2016 Consistent Balance Sheet Growth | 7 Total Assets Source: SNL Financial Note: dollars in millions *Peers defined as banks in MD, VA, DC with total assets between $1 billion and $5 billion 201
Slide 9: Well Positioned In Our Market
Well Positioned In Our Market | 8 DC Area Community Banks – Total Assets(1) Rank Company Location Total Assets ($000) 1 United Bankshares Inc. Charleston, WV $ 14,508,892 2 Eagle Bancorp Inc. Bethesda, MD $ 6,890,097 3 Sandy Spring Bancorp Inc. Olney, MD $ 5,091,383 4 Cardinal Financial Corp. Mclean
Slide 10: Our Credit Culture
Our Credit Culture | 9 • We regard the money we are lending as our own money • We do not engage in speculative lending and expect our borrowers to have a vested interest • We believe in well-documented files and thorough credit analysis, and have received numerous accolades from our regulators and a
Slide 11: Loans, Held for Investment
Office 27% Retail 22% Residential AD&C 17% Warehouse, Industrial 7% Multifamily 4% Hotel 5% Land 5% Other (Church, School, Etc.) 13% Loans, Held for Investment | 10 Construction and Development $288.2 19% Commercial Real Estate (Owner Occupied) $231.4 15% Commercial Real Estate (Investment)* $557.7
Slide 12: Asset Quality
Asset Quality | 11 Source: SNL Financial Note: As of 12/31/16, dollars in thousands * Peers defined as banks in MD, VA, DC with total assets between $1 billion and $5 billion. Data as of 09/30/16. * Low NPAs with positive trend Total NPAs NPAs/Total Assets $22,051 $22,265 $11,206 $14,498 $8,537 $0 $
Slide 13: Strong Core Deposit Base
Strong Core Deposit Base | 12 Cost of Deposits = 0.59% Note: As of 12/31/16, dollars in millions *Jumbo Time Deposits are those time deposits over $250,000 Noninterest Bearing Deposits, $381.9 NOW & Other Trans. Accts, $134.9 MMDA & Other Savings, $480.7 Retail Time Deposits, $386.1 Jumbo Time Depos
Slide 14: Earnings Growth
$2,057 $6,161 $9,263 $12,181 $18,007 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2012 2013 2014 2015 2016 | 13 Earnings Growth Core ROAA(1) 2012 2013 2014 2015 2016 Diluted EPS $0.53 $0.72 $1.07 $1.13 $1.37 Source: SNL Financial Note: As of 12/31/16; dollars in thousands 1 Core income excludes extraor
Slide 15: Key Metrics
Key Metrics | 14 Source: SNL Financial Note: As of 12/31/16. 1 Efficiency ratio excludes extraordinary items, non-recurring items, foreclosure expense, gains/losses on sale of securities, debt extinguishment and amortization of intangibles *Peers defined as banks in MD, VA, DC with total assets betw
Slide 16: Diversifying Revenue Stream
Diversifying Revenue Stream | 15 Total Operating Revenue(1) Source: SNL Financial Note: As of 12/31/16, dollars in thousands 1 Excludes gains and sales of securities • Acquired 1st Portfolio Holding Corporation in July 2015 to diversify revenue streams away from spread income • 1st Portfolio operate
Slide 17: Shareholder Returns
$11.85 $11.98 $12.91 $13.31 $13.62 $13.90 $13.93 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14.00 $14.50 $15.00 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 $0.27 $0.29 $0.30 $0.30 $0.34 $0.37 $0.36 $0.20 $0.22 $0.24 $0.26 $0.28 $0.30 $0.32 $0.34 $0.36 $0.38 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q
Slide 18: Recent Performance Summary
| 17 Recent Performance Summary WFBI Relative Price Performance Source: SNL Financial Note: Market data as of 02/08/17 *Peers defined as banks in MD, VA, DC with total assets between $1 billion and $5 billion (10.0%) 10.0% 30.0% 50.0% 70.0% 90.0% 110.0% 2/6/15 4/6/15 6/6/15 8/6/15 10/6/15 12/6/15 2/
Slide 19: M&A Track Record
M&A Track Record | 18 Proven track record of completing acquisitions • WFBI acquisition of 1st Portfolio Holding Corporation in 2015 (all stock) • WFBI assumption of Millennium Bank, NA in 2014 (FDIC assisted) • WFBI acquisition of Alliance Bankshares in 2012 (cash and stock) • WFB acquisition of Fi
Slide 20: Concluding Remarks
• Strong management team • Insider ownership aligns management and stakeholder interests • Demographically attractive market area • Demonstrated track record of quality growth • Excellent asset quality and risk management • Strong profitability with attractive earnings growth Concluding Remarks | 19
Slide 21: Thank You
Thank You NASDAQ: WFBI www.wfbi.com
Slide 22: Appendix
| 21 Appendix
Slide 23: Senior Leadership Team
Senior Leadership Team | 22 Joseph S. Bracewell – Chairman of the Board Chairman of the Board of Directors of the Bank and the Company Over 40 years of experience in the banking and legal industries Principal organizer or founding director of six newly-chartered banks, five of which have been
Slide 24: Senior Leadership Team
George W. Connors, IV – Bank President / CCO Founding director and President and Chief Credit Officer of WashingtonFirst Has been in commercial banking for over 32 years, serving in executive management positions at WashingtonFirst, Century National Bank and its successor, United Bank Served a
Slide 25: Board of Directors
Board of Directors | 24 Physicians Attorneys Consulting/Government Relations Professionals Real Estate Professionals Entrepreneurs Joseph S. Bracewell * Chairman of the Board William C. Oldaker * Oldaker Law Group, LLP Honorable Joe R. Reeder Greenberg Traurig Josephine S. Cooper Josephine Cooper, L
Slide 26: Recent Market Superlatives
Recent Market Superlatives | 25 • Sandler O’Neill Class of 2016 Bank & Thrift Sm-All Star • Added to Russell 2000® Index in 2016 • Top 10 Most Profitable Banks in DC metro area • #3 Total Asset Growth among banks in DC metro area • Top 10 Commercial Lender in DC metro area • Bauer Financial 5 Star R
Slide 27: Facts About Our Common Stock
Facts About Our Common Stock | 26 1 Data as of close of business 02/08/17 2 SNL Financial Exchange NASDAQ Stock Market Ticker symbol WFBI Current Market Price1 $27.71 Common shares outstanding 10,987,652 voting; 12,896,385 total Market capitalization1 $357.4 million Insider ownership2 21.75% total I
Slide 28: Historical Balance Sheet
Historical Balance Sheet | 27 * Retroactively adjusted to reflect the effect of all stock dividends. (dollars in thousands) 2012 2013 2014 2015 2016 Cash and cash equivalents $ 224,207 $ 109,164 $ 62,306 $ 62,753 $ 97,373 Investment securities and other investments 138,221 148,897 171,733 226,241 29
Slide 29: Historical Income Statement
Historical Income Statement | 28 * Retroactively adjusted to reflect the effect of all stock dividends. (dollars in thousands) 2011 2012 2013 2014 2015 2016 Interest income $ 24,387 $ 28,219 $ 46,829 $ 55,119 $ 63,183 $ 73,847 Interest expense 5,009 4,949 6,130 7,219 9,211 12,471 Net interest income
Slide 30: Credit Composition and Quality
Credit Composition and Quality | 29 * Data as of 12/31/16 (dollars in thousands) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Non-accrual $ 5,638 $ 5,920 $ 8,379 $ 10,201 $ 8,790 $ 7,417 $ 5,887 $ 5,746 90+ days still accruing - 113 73 28 - 13 - 2 TDRs 3,090 4,362 3,959 4,269 3,594 3,616 3,184 1,361 OREO
Slide 31: Capital Strength
| 30 Capital Strength (dollars in thousands) 2012 2013 2014 2015 2016 Total Shareholders' Equity 101,520 107,604 134,538 178,595 192,660 Common Equity Tier 1 (CET1) Capital N/A N/A N/A 164,789 181,469 Trust Preferred 7,468 7,607 7,746 7,884 8,023 Total Tier 1 Capital 108,988 115,211 142,284 172,673
Slide 32: Loans by Location & Type
| 31 Loans by Location & Type County/State Construction & Development Owner Occupied CRE Non-Owner Occupied CRE Residential Real Estate Commercial and Industrial Consumer Total % of Portfolio Fairfax County, VA* $81,000 $54,770 $103,396 $63,989 $29,209 $1,665 $334,029 21.60% Loudoun County, VA* 34,9
Slide 33: Yields and Cost of Funds
Yields and Cost of Funds | 32 Yield on Average Earning Assets Cost of Funds Cost of Interest Bearing Deposits WFBI Peers Yield on Loans 4.37% 4.24% 4.24% 4.09% 4.23% 4.10% 4.18% 4.12% 4.12% 4.07% 4.22% 3.90% 3.95% 4.00% 4.05% 4.10% 4.15% 4.20% 4.25% 4.30% 4.35% 4.40% 3Q2015 4Q2015 1Q2016 2Q2016 3Q20
Slide 34: Investment Portfolio
| 33 Investment Portfolio Book Value % Total Unrealized Gain (Loss) TEY Treasuries $8,082 3% ($4) 1.65% Agencies 99,153 35% (677) 1.82% MBS 69,835 25% (884) 2.06% CMO 80,306 28% (1,488) 2.52% Municipals 26,896 9% (1,015) 2.06% Total $284,272 100% ($4,068) 2.09% • Goal: Liquidity management and earni
Slide 35: Interest Rate Risk Sensitivity
| 34 Interest Rate Risk Sensitivity Immediate Basis Point Change in Interest Rates Estimated Change in Net Interest Income in 12 months +400 bp 2.1% +300 bp 5.5% +200 bp 6.0% +100 bp 3.3% • Active ALCO process • No off-balance sheet derivatives • Run static and dynamic models, as well as parallel v.
Slide 36: Profile: WashingtonFirst Mortgage
| 35 Profile: WashingtonFirst Mortgage • Skilled management focused on profit and risk mitigation • Prime residential mortgage services • 97% of the business is in the Washington, DC MSA • $772 million in originations in 2016 • Focused on quality loans with liquid and reliable markets • Fannie Mae/F
Slide 37: Profile: 1st Portfolio Wealth Advisors
| 36 Profile: 1st Portfolio Wealth Advisors • Integrated wealth management for: • Business owners and their families • Wealthy individuals • $297 million assets under management • SEC regulated RIA • Focused on serving clients of $1 million or more in investable assets • Fee-based asset management S
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