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| 8-K - 8-K - WashingtonFirst Bankshares, Inc. | a8-kannualmeetingpresentat.htm |
NASDAQ: WFBI
Annual Shareholder Meeting
April 26, 2017
The Tower Club
Tysons Corner, Virginia
NASDAQ: WFBI
Disclaimer
1
WashingtonFirst Bankshares, Inc. and Subsidiary (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 expectations; estimates of risks and of future costs
and benefits; assessments of probable loan losses; assessments of market risks; and
statements of the ability to achieve financial and other goals. These forward-
looking statements are subject to significant uncertainties because they are based
upon or are affected by: management’s estimates and projections of future interest
rates, market behavior, and other economic conditions; future laws and
regulations; and a variety of other matters which, by their nature, are subject to
significant uncertainties. Because of these uncertainties, the Company’s actual
future results may differ materially from those indicated. In addition, the
Company’s past results of operations do not necessarily indicate its future results.
Please also see the discussion of “RISK FACTORS” in the Company’s 10-K dated
March 15, 2016 which is available online at www.sec.gov.
For further information on the company please contact:
Matthew R. Johnson
Executive Vice President / Chief Financial Officer
(703) 840-2422
mjohnson@wfbi.com
NASDAQ: WFBI
2016 Year in Review
2
*Source: SNL Financial; based on deposits. Includes announced acquisition of Cardinal Financial Corp by United Bankshares
Opened two branches:
Historic Old Town Alexandria, Virginia
Potomac, Maryland
Surpassed $2.0 billion in total assets as of December 31, 2016
Maintained superior asset quality: improved NPAs from 0.86% to
0.43%, as of December 31, 2016
Added to the Russell 2000® index
Declared an increased cash dividend to $0.07 on November 22, 2016
(paid January 3, 2017)
Attained excellent market position as the 4th largest bank
headquartered in the Washington, DC metro area*
NASDAQ: WFBI
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, VA $ 4,210,514
5 Burke & Herbert Bank & Trust Company Alexandria, VA $ 2,958,790
6 WashingtonFirst Bankshares Inc. Reston, VA $ 2,002,911
7 Old Line Bancshares, Inc. Bowie, MD $ 1,716,690
8 Premier Financial Bancorp Inc. Huntington, WV $ 1,498,120
9 Access National Corp. Reston, VA $ 1,430,708
10 Middleburg Financial Corp. Middleburg, VA $ 1,335,002
11 Community Financial Corp. Waldorf, MD $ 1,334,257
12 Revere Bank Laurel, MD $ 1,327,309
13 Southern National Bncp of VA Mclean, VA $ 1,142,443
14 John Marshall Bank Reston, VA $ 1,075,166
15 FVCBankcorp, Inc. Fairfax, VA $ 909,305
16 Eagle Finacial Services, Inc Berryville, VA $ 668,421
17 Fauquier Bankshares Inc. Warrenton, VA $ 623,877
18 MainStreet Bancshares Inc. Fairfax, VA $ 575,711
Source: SNL Financial
1 As of 12/31/16; Banks within either the Washington-Arlington-Alexandria MSA or operating a branch in the District of Columbia with total assets
between $500MM and $15B
*Peers defined as banks in MD, VA and DC with total assets between $1 billion and $5 billion
4
Total Asset Size
NASDAQ: WFBI
Leader Among Local Community Banks of Similar Age
Total Asset Size (continued) As of December 31, 2016
Source: SNL Financial and FDIC
4
$2,003
$832
$909
$496
$1,075
$576
$1,430
$1,894
Local Community Banks Established Since 2000
(dollars in thousands)
NASDAQ: WFBI 5
Growth
Total Deposits
(in millions)
Total Loans*
(in millions)
* Loans held for investment, at amortized cost.
$753
$838
$1,065
$1,308
$1,535
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2012 2013 2014 2015 2016
$973 $949
$1,086
$1,333
$1,523
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2012 2013 2014 2015 2016
NASDAQ: WFBI 6
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
Construction
and
Development
$288.2
19%
Commercial Real
Estate (Owner
Occupied)
$231.4
15%
Commercial Real
Estate
(Investment)*
$557.7
36%
Residential Real
Estate
$287.3
19%
Commercial and
Industrial
$165.2
11%
Consumer
$4.7
0%
CRE Breakout
Diversified loan portfolio with a strong credit culture
Note: As of 12/31/16, dollars in millions
* Includes multifamily loans
• Disciplined underwriting
• Proactive portfolio management
• Quarterly stress testing of portfolio
• Quarterly independent credit review
• Dedicated special assets team
CRE Risk Management
NASDAQ: WFBI 7
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
1.92% 1.97%
0.84% 0.86%
0.43%
2.48%
2.33% 2.41%
1.69%
0.58%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2012 2013 2014 2015 2016
WFBI Peers
NPAs / Assets
NASDAQ: WFBI 8
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
Deposits*,
$139.1
Deposit Composition Non-Maturity Deposits
$590.4
$624.5
$715.2
$893.1
$997.5
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
2012 2013 2014 2015 2016
C
os
t
of
D
ep
os
it
s
(%
)
N
on
-M
at
ur
it
y
D
ep
os
it
s
($
m
m
)
Deposits
NASDAQ: WFBI
Leader Among Local Community Banks of Similar Age
Deposit Market Share As of June 30, 2016
9
0.70
0.19
0.30
0.18
0.34
0.15
0.47
0.36
Local Community Banks Established Since 2000
(percent of market)
Source: SNL Financial and FDIC
NASDAQ: WFBI 10
$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
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 extraordinary items, non-recurring items and gains/losses on sale of securities
*Peers defined as banks in MD, VA, DC with total assets between $1 billion and $5 billion; data through 06/30/16
Net Income
0.65%
0.64%
0.75%
0.86%
1.00%
0.90%
0.91%
0.92%
0.86%
0.92%
0.40%
0.60%
0.80%
1.00%
1.20%
2012 2013 2014 2015 2016
WFBI Peer Median
NASDAQ: WFBI 11
Earnings Trend
2012 2013 2014 2015 2016
Fully diluted earnings per share* 0.53$ 0.72$ 1.07$ 1.13$ 1.37$
Net income - common 2,057$ 6,161$ 9,263$ 12,181$ 18,007$
Return on average assets 0.39% 0.60% 0.75% 0.83% 1.00%
Return on average equity 3.92% 6.01% 8.36% 8.48% 9.50%
Net interest margin 4.14% 3.97% 3.92% 3.74% 3.52%
Efficiency ratio** 63.0% 64.9% 66.6% 63.1% 63.4%
* Retroactively adjusted to reflect the effect of all stock dividends
** Excludes merger expenses, one-time gain on acquisition and gain (loss) on sale of investment securities
NASDAQ: WFBI
Capital Strength
(dollars in thousands) 2012 2013 2014 2015 2016
Total Assets 1,147,818$ 1,127,559$ 1,333,390$ $1,674,466 $2,002,911
Total Shareholders' Equity 101,520 107,604 134,538 178,595 192,660
TCE / Tangible Assets 6.97% 7.64% 8.60% 9.95% 9.03%
Total risk based capital ratio 13.77% 14.05% 13.20% 14.86% 13.99%
Tier 1 risk based capital ratio 12.71% 12.80% 12.14% 12.22% 11.61%
Tier 1 leverage ratio 9.97% 10.53% 10.23% 10.67% 10.14%
12
NASDAQ: WFBI
Facts About Our Common Stock As of April 25, 2017
Exchange NASDAQ Stock Market
Ticker symbol WFBI
Current Market Price1 $28.24
Common shares outstanding 12,120,209 voting; 12,937,044 total
Market capitalization1 $365 million
Insider ownership2 25% total
Institutional ownership2 49% total
Stock dividends 5% in 2012, 2013, 2014, and 2016
Cash dividend Consecutive quarterly dividends since January 2014
Current quarterly dividend $0.07
Average volume1 (YTD) 23,890
Fully Diluted EPS (LTM) $1.41
Tangible book value (3/31/2017) $14.24
1 Data as of close of business April 25, 2017
2 SNL Financial
13
NASDAQ: WFBI
WFBI Relative Price Performance February 2015 – February 2017
14
(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 2/6/16 4/6/16 6/6/16 8/6/16 10/6/16 12/6/16 2/6/17
WFBI (84.1%) Peers* (52.2%)
NASDAQ: WFBI 15
Our Strategy
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 lenders
Blueprint for Success
Profitability
Continued emphasis on Net Interest Margin
Enhance fee income
Continued diligence to minimize overhead
Opportunistic
Growth
Explore potential acquisitions
Cultivate relationships with institutional
investors
Maintain Credit
Quality
Continued diligence on credit quality
Conservative credit culture
Disciplined underwriting
NASDAQ: WFBI
Looking Ahead – 2017
Expand bank branch network into new markets in the greater
DC metro area
Hire additional lenders
Continue to maximize on our earnings
Net earnings of $4.4 million for the first quarter
NPAs remain low at 0.37%
Continue to provide superior service quality
16
NASDAQ: WFBI 17
Locations
NASDAQ: WFBI
Recognition
18
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
Top 15 Home Mortgage Lender in DC metro area
Bauer Financial 5 Star Rating
NASDAQ: WFBI
WFYF Golf Invitational
19
NASDAQ: WFBI
NASDAQ: WFBI
www.wfbi.com
Thank You