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| 8-K - 8-K - WashingtonFirst Bankshares, Inc. | a8-kfebruary2017investorpr.htm |
NASDAQ: WFBI
www.wfbi.com
Investor Presentation
February 2017
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 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 filed 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) 840-2410
mjohnson@wfbi.com
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*
• $2.0 billion in total assets as of December 31,
2016
• 5-year asset CAGR: 14.9%
• Demonstrated organic growth and
successful acquisitions
• Superior asset quality: NPAs of 0.43% as of
December 31, 2016
• Experienced management team
• Strong earnings with diverse revenue channels
*Source: SNL Financial; based on deposits. Includes announced acquisition of Cardinal Financial Corp by United Bankshares
Franchise Value Drivers Branch and Office Network
Exceptional Market
| 3
Source: SNL Financial
1 Deposit data as of 06/30/16, updated annually from FDIC SOD
2 As of February 2017; data set excludes MSAs with populations less than 2 million
Rank Rank Institution Branches ($mm) (%)
1 Bank of America Corp. 31 15,425,467 23.1
2 SunTrust Banks Inc. 38 10,495,570 15.7
3 Wells Fargo & Co. 35 9,599,061 14.4
4 Capital One Financial Corp. 32 4,453,111 6.7
5 Citigroup Inc. 10 3,427,000 5.1
6 BB&T Corp. 32 3,390,845 5.1
7 1 United Bankshares Inc. 21 3,037,103 4.5
8 2 Eagle Bancorp Inc. 11 2,695,672 4.0
9 PNC Financial Services Group Inc. 33 2,423,287 3.6
10 HSBC Holdings Plc 8 2,065,018 3.1
11 3 WashingtonFirst Bankshares Inc. 19 1,548,877 2.3
12 Toronto-Dominion Bank 12 1,148,050 1.7
13 M&T Bank Corp. 23 1,050,287 1.6
14 4 Burke & Herbert Bank & Trust Co. 5 878,350 1.3
15 5 Revere Bank 4 562,020 0.8
16 6 Congressional Bancshares Inc. 3 517,478 0.8
17 7 Chain Bridge Bancorp Inc. 1 479,180 0.7
18 8 Capital Bancorp Inc. 1 448,895 0.7
19 9 MainStreet Bancshares, Inc. 4 415,748 0.6
20 10 John Marshall Bank 4 378,152 0.6
Totals (1-20) 327 64,439,171 96.5
Totals (1-49) 374 66,755,726 100.0
Banks in WFBI’s Zip Code of Operation(1)
$-
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
‘17 Median Household Income – Top 20 MSAs(2)
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 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
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 relationships
• Significant insider ownership
Name Age Title
Joseph S. Bracewell 69 Chairman of the Board
Shaza L. Andersen 50 President/CEO
George W. Connors, IV 57 Bank President/CCO
Matthew R. Johnson 52 EVP/CFO
Michael J. Rebibo 51 EVP/President Mortgage & 1st Portfolio
Richard D. Horn 54 General Counsel
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 $ 1,916,938 $ 2,002,911
Total Net Loans 747,095 829,586 1,056,869 1,332,228 1,553,070 20.1% 1,431,126 1,481,258 1,553,070
Deposits 972,660 948,903 1,086,063 1,333,242 1,522,741 11.9% 1,548,877 1,532,255 1,522,741
Total Equity 101,520 107,604 134,538 178,595 192,660 17.4% 188,300 191,980 192,660
Balance Sheet Ratios
Loans HFI / Deposits 77.5% 88.3% 98.1% 98.1% 100.78% 89.8% 93.4% 100.78%
TCE / TA 6.97% 7.64% 8.60% 9.95% 9.03% 9.52% 9.40% 9.03%
Leverage Ratio 9.97% 10.53% 10.23% 10.67% 10.14% 10.06% 10.33% 10.14%
Total Capital Ratio 13.77% 14.05% 13.20% 14.86% 13.99% 14.56% 14.65% 13.99%
Performance
Net Income - Common $ 2,057 $ 6,161 $ 9,263 $ 12,181 $ 18,007 72.0% $ 4,398 $ 4,941
Diluted EPS $ 0.53 $ 0.72 $ 1.07 $ 1.13 $ 1.37 26.8% $ 0.35 $ 0.39 $ 0.36
ROAA 0.39% 0.60% 0.75% 0.83% 1.00% 0.98% 1.09% 1.00%
ROAE 3.92% 6.01% 8.36% 8.48% 9.50% 9.42% 10.21% 9.69%
Net Interest Margin 4.14% 3.97% 3.92% 3.74% 3.52% 3.37% 3.53% 3.40%
Efficiency Ratio 75.3% 67.2% 66.4% 64.0% 63.42% 64.7% 63.4% 60.81%
Noninterest Inc/ Operating
Revenue 4.01% 3.85% 3.54% 12.41% 29.90% 33.07% 34.97% 25.72%
Asset Quality
NPAs / Assets 1.92% 1.97% 0.84% 0.86% 0.43% 0.71% 0.58% 0.43%
NCOs / Avg Loans* 0.43% 0.32% 0.24% 0.04% 0.18% 0.20% 0.18% 0.16%
Reserves / Loans HFI 0.83% 1.02% 0.87% 0.94% 0.89% 0.91% 0.91% 0.89%
Texas Ratio 25.65% 23.59% 9.07% 8.16% 4.42% 7.03% 5.75% 4.42%
Per Share Information
Common Shares
Outstanding** 8,268,658 8,431,806 10,043,556 12,805,152 12,896,385 12,860,836 12,869,523 12,896,385
TBV per Share** $ 9.64 $ 10.18 $ 11.38 $ 12.91 $ 13.93 $ 13.62 $ 13.90 $ 13.93
Dividends Paid $ 0.00 $ 0.00 $ 0.15 $ 0.20 $ 0.24 $ 0.06 $ 0.06 $ 0.06
* Annualized
** Retroactively adjusted to reflect the effect of all stock dividends
$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
2012 2013 2014 2015 2016
WFBI 105.2% (1.8%) 18.4% 25.8% 19.7%
Peers* 8.5% (1.6%) 4.8% 4.2%
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, 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
*
5 Year Indexed Asset Growth
229%
32%
77%
62%
145%
0%
WFBI Peer ANCX CFNL EGBN
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 auditors
• We look for a primary source of repayment based on a demonstrated cash flow history
• We model or analyze for an economically independent secondary source of repayment, which
usually consists of hard collateral and/or personal guarantees
• Our approval process involves multiple loan officers, and all significant loans require the prior
approval of a Board Committee
• We strive to identify problems early and work them out expeditiously
• We have zero tolerance for compliance violations or any kind of insider self-dealing
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
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
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
$5,000
$10,000
$15,000
$20,000
$25,000
2012 2013 2014 2015 2016
Nonaccruals TDRs OREO 90+ PD
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
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
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
)
$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 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
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 between $1 billion and $5 billion; data through 06/30/16
WFBI Peer* WFBI Peer*
Efficiency Ratio(1) Net Interest Margin
61.4%
65.0% 65.2%
64.0%
63.4%
65.3%
66.8% 66.6%
65.7%
63.4%
60.00%
61.00%
62.00%
63.00%
64.00%
65.00%
66.00%
67.00%
68.00%
2012 2013 2014 2015 2016
4.14%
3.97%
3.92%
3.68%
3.52%
4.01%
3.89% 3.89%
3.65% 3.65%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
4.10%
4.20%
2012 2013 2014 2015 2016
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 operated two subsidiaries
• 1st Portfolio Lending Corporation, a
residential mortgage origination platform
(WashingtonFirst Mortgage)
• 1st Portfolio Wealth Advisors, an SEC
registered investment advisor
• Through December 31, 2016 WashingtonFirst
Mortgage originated approximately $772 million in
residential mortgage loans
• As of December 31, 2016 1st Portfolio Wealth
Advisors had assets under management of
approximately $297 million, an increase of
approximately 31.1% over assets under
management from the beginning of the year
• Increased fee income / operating revenue to nearly
30% in 2016 from less than 12.41% for the
comparable period in 2015
Fee Income 2016 YTD(1)
Gain on sale of
loans, net
$18,329
Mortgage
banking
activities
$4,265
Wealth
management
income
$1,835
Other operating
income
$1,494
Service charges
on deposit
accounts
$259
$24,241
$43,801
$49,490
$61,853
$87,558
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2012 2013 2014 2015 2016
Net Interest Income Noninterest Income
$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 3Q2016 4Q2016
Shareholder Returns
| 16
Earnings per Share Tangible Book Value
| 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 2/6/16 4/6/16 6/6/16 8/6/16 10/6/16 12/6/16 2/6/17
WFBI (84.1%) Peers* (52.2%)
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 First Liberty Bancorp in 2006 (cash and stock)
• WFB acquisition of Sterling branch in 2005
• WFB acquisition of DC branch in 2004
• Century National Bank (CNB) sale to United Bankshares in 2001
• CNB acquisition of GrandBank in 2000
• CNB acquisition of Reston branch in 1998
• CNB acquisition of McLean branch in 1997 (including capital raising contingency)
• CNB acquisition of DC branch from RTC in 1994
• 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
Thank You
NASDAQ: WFBI
www.wfbi.com
| 21
Appendix
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 profitably sold
Previously a member of the Board of Directors of the Independent Community Bankers of America as well as
a director and vice chairman of the Federal Home Loan Bank of Atlanta
Shaza L. Andersen –President/CEO
Founder and Chief Executive Officer of WashingtonFirst Bank
Over 27 years of experience in banking including serving as the EVP and COO of Century National Bank from
1994 to 2001 until acquired by United Bank in 2001
Extensive M&A experience
Serves on several Boards including Amalgamated Casualty Insurance, Washington Redskins Leadership
Council, Blitz for the Better Foundation, and George Mason University Dean’s Advisory Council, and previously
served on the Board of Directors of the Federal Home Loan Bank of Atlanta
Matthew R. Johnson – EVP / CFO
Executive Vice President and Chief Financial Officer of WashingtonFirst
Has been with WashingtonFirst since its inception in 2004
Extensive financial institution planning and development as well as acquisition experience
Prior to WashingtonFirst served as the Chief Financial Officer of another community bank in the DC
metro area and also held management positions with Olson Research Associates, Caledonian Venture
Partners and Chesapeake Ventures
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 as SVP and DC Group Lending Manager for United from 2001 to 2004 and was a voting
member of its 7-member Executive Loan Committee
Senior Leadership Team
| 23
Richard D. Horn – General Counsel & Corporate Secretary
Founding director and General Counsel for both the Bank and the Company
Prior to joining WashingtonFirst was a partner with the law firm of Bracewell & Giuliani, LLP in
Washington, DC
Admitted to practice law in Virginia, Maryland and the District of Columbia
Michael J. Rebibo, CFP® – EVP/ President Mortgage & 1st Portfolio
Founder and President/CEO of subsidiaries WashingtonFirst Mortgage & 1st Portfolio Wealth Advisors
Prior to founding 1st Portfolio was founder and CEO of Financial Security Corporation
Served as a founding organizer of Access National Corporation, a publicly traded holding company
in the Washington, DC metro area
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, LLC
Honorable
John H. Dalton
The Financial
Services Roundtable
Juan A. Mencia *
CubeCorp/ByteTech
Mark C. Michael
Occasions Caterers, Inc.
Larry D. Meyers
Meyers & Associates
Madhu K. Mohan, MD *
Riverside Medical Group
Randall S. Peyton, MD
Arthritis & Sports
Orthopaedics &
Physical Therapy
James P. Muldoon
METCOR, Ltd.
Gail R. Steckler
Infrastructure
Management Group, Inc.
General (Ret.)
Johnnie E. Wilson
JWIL, LLC
William G. Reilly
Champion Title &
Settlements, Inc.
Kenneth Morrissette *
Interstate Worldwide
Relocation Services
Diverse experience with strong ties to the Washington, DC metropolitan area
Richard D. Horn
General Counsel
Bankers
Caren D. Merrick
Pocket Mentor
C.E. Andrews *
MorganFranklin
Consulting
Shaza L. Andersen *
President & Chief
Executive Officer
Donald W. Fisher, PhD
American Medical Group
Association
Jon M. Peterson
The Peterson Companies
* Executive Committee
Stephen M. Cumbie
NVCommercial, NVRetail,
Metro Realty
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 Rating
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
Institutional ownership2 44.67% total
Stock dividends 5% in 2012, 2013, 2014 and 2016
Cash dividend Consecutive quarterly dividends since January 2014
Current quarterly dividend $0.07 (0.96% yield)
Average volume1 (3 mo. average) 38,930
Fully Diluted EPS (LTM) $1.37
Tangible book value (12/31/2016) $13.93
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 138,221 148,897 171,733 226,241 291,930
Loans held for sale - - 1,068 36,494 32,109
Loans held investment, net of allowance 747,095 829,586 1,055,801 1,295,794 1,520,961
Other real estate owned 3,294 1,463 361 - 1,428
Intangibles 4,029 3,943 6,894 13,319 1,619
Other assets 30,972 34,506 35,227 39,865 57,491
Total Assets $ 1,147,818 $ 1,127,559 $ 1,333,390 $ 1,674,466 $ 2,002,911
Deposits $ 972,660 $ 948,903 $ 1,086,063 $ 1,333,242 $ 1,522,741
Borrowings 64,923 63,489 104,311 149,913 272,389
Other liabilities 8,715 7,563 8,478 12,716 15,121
Total Liabilities 1,046,298 1,019,955 1,198,852 1,495,871 1,810,251
Preferred stock 17,796 17,796 13,347 - -
Common equity 83,757 91,317 120,757 178,722 195,239
Accumulated OCI (33) (1,509) 434 (127) (2,579)
Total Shareholders' Equity 101,520 107,604 134,538 178,595 192,660
Total Liabilities and Shareholders' equity $ 1,147,818 $ 1,127,559 $ 1,333,390 $ 1,674,466 $ 2,002,911
Summary ratios:
Tangible book value per share* $ 9.64 $ 10.18 $ 11.38 $ 12.91 $ 13.93
Loans HFI / Deposits 77.5% 88.3% 98.1% 98.1% 100.8%
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 19,378 23,270 40,699 47,900 53,972 61,376
Provision for loan losses 2,301 3,225 4,755 3,005 3,550 3,880
Net interest income after provision for loan losses 17,077 20,045 35,944 44,895 50,422 57,496
Non-interest income 1,159 3,541 1,139 1,998 7,891 27,505
Non-interest expense 13,835 20,178 28,117 33,116 39,589 56,863
Income before provision for income taxes 4,401 3,408 8,966 13,777 18,724 28,138
Provision for income taxes 1,794 1,173 2,627 4,353 6,469 10,131
Net income 2,607 2,235 6,339 9,424 12,255 18,007
Preferred stock dividends and accretion 677 178 178 161 74 -
Net income available to common shareholders $ 1,930 $ 2,057 $ 6,161 $ 9,263 $ 12,181 $ 18,007
Fully diluted earnings per share* $ 0.59 $ 0.53 $ 0.72 $ 1.07 $ 1.13 $ 1.37
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 451 291 109 - 1,675 2,159 1,969 1,428
Other - - - - - - - -
Non-performing assets $ 9,179 $ 10,686 $ 12,520 $ 14,498 $ 14,059 $ 13,205 $ 11,040 $ 8,537
Loans 30-89 days past due / Loans HFI 0.11% 0.41% 0.49% 0.35% 0.51% 0.20% 0.50% 0.37%
NPAs & 90+ days past due / Assets 0.64% 0.70% 0.78% 0.86% 0.80% 0.71% 0.58% 0.43%
Reserves / Loans HFI 0.91% 0.90% 0.92% 0.94% 0.92% 0.91% 0.91% 0.89%
Non-GAAP, adjusted reserves / Loans HFI 1.45% 1.36% 1.31% 1.30% 1.25% 1.22% 1.17% 1.11%
Reserves / NPLs 112.91% 102.22% 93.25% 84.76% 99.56% 114.02% 220.15% 191.05%
Net charge-offs / Average loans HFI* 0.04% 0.03% 0.04% 0.04% 0.20% 0.20% 0.18% 0.18%
| 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 108,988 115,211 142,284 172,673 189,492
Allowance for loan losses 6,260 8,534 9,257 12,289 13,891
Subordinated Debt 2,214 2,247 2,281 25,000 25,000
Total Tier 2 Capital 8,474 10,781 11,538 37,289 38,891
Total Risk Based Capital 117,462 125,992 153,822 209,962 228,383
Total Assets $ 1,147,818 $ 1,127,559 $ 1,335,310 $ 1,674,466 $ 2,002,911
Total risk based capital 113,752 123,811 146,713 209,962 228,383
Total risk weighted assets 826,103 881,235 1,111,426 1,412,771 1,632,651
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%
| 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* 34,921 27,128 28,311 13,355 15,356 29 119,100 7.80%
Prince William County,
VA
5,645 21,469 7,528 9,270 12,289 17 56,218 3.70%
Arlington County, VA* 18,155 2,370 24,793 21,254 3,833 5 70,410 4.60%
City of Alexandria, VA 4,605 22,294 23,263 5,891 5,874 17 61,944 4.00%
Other VA 20,799 18,382 55,883 19,401 12,608 12 127,085 8.30%
VA – Total 165,125 146,413 243,174 133,160 79,169 1,745 768,786 50.00%
Montgomery County,
MD*
78,325 40,348 123,427 74,033 27,029 82 343,244 22.40%
Prince George’s
County, MD
28,207 16,043 41,235 33,910 16,932 227 136,554 8.90%
Baltimore City 3,802 12110 20,903 4,151 20,151 11 61,128 4.00%
Other MD 43 822 22,206 9,682 10,297 114 43,164 2.80%
MD – Total 192 11,175 75,718 12,937 8,162 541 108,725 7.10%
Washington, DC 32,244 40,150 160,062 60,680 55,542 893 349,571 22.80%
Other USA 12,499 4,502 31,184 19,377 3,432 1,948 72,942 4.80%
TOTAL $288,193 $231,413 $557,847 $287,250 $165,172 $4,668 $1,534,543 100.00%
% of Portfolio 18.80% 15.10% 36.30% 18.70% 10.80% 0.30% 100.00%
Note: As of 12/31/16; dollars in thousands
* Denotes county is in top 10 highest median income counties in USA.
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 3Q2016 4Q2016
0.68%
0.71%
0.81% 0.79% 0.77% 0.77%
0.52%
0.50%
0.54% 0.55%
0.56%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016
0.73% 0.74%
0.78%
0.81% 0.81% 0.82%
0.52% 0.52%
0.55% 0.54% 0.57%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016
4.93% 4.89%
4.76% 4.72% 4.72%
4.63%
4.77%
4.73%
4.65%
4.57%
4.75%
4.00%
4.20%
4.40%
4.60%
4.80%
5.00%
5.20%
3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016
| 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 earnings
enhancement
• Minimal optionality or credit risk
• No corporate debt or private label MBS/CMO
• Investment grade municipals
• Minimum geographic and issuer
concentrations
• 54% general obligation bonds
• 79% rated “AA” or better, no bonds rated
below “A”
• Portfolio duration*: 2.8 years
• Portfolio price volatility +200bp*: -6.7%
* Data as of 09/30/16
| 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. nonparallel rate scenarios
• Positioned to benefit from rising rates
• Approximately 33% of loan portfolio is
floating rate
• Approximately 75% of variable rate
loans are current at or above their rate
floors
• Cumulative 1yr GAP: 0.83
• EVE +200bp: +5.8%
Note: Data as of 09/30/16
| 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/Freddie Mac approved seller/servicer
• Fee-based model; mortgages sold to secondary
market
Mortgage Fee Income & Volume
* Closed on acquisition of 1st Portfolio Lending on July 31, 2015
*
%
G
ross M
argin
$6 $5
$83
$73 $66
$157 $155
$98
$0 $0
$41
$46 $57
$59
$109
$71
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
$0
$100
$200
$300
1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016
V
ol
um
e
in
d
ol
la
rs
(
m
ill
io
ns
*
| 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
Source: SNL Financial
1 As of February 2017; data set excludes MSAs with populations less than 2 million
2 Data set excludes counties with populations less that 500 thousand. Highlighted counties
represents those within the Washington, DC MSA
‘17 Median Household Income – Top 20 MSAs(1)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
‘17 Wealthiest Counties – Top 20 Counties(2)