WashingtonFirst Bankshares Inc. Announces Earnings for the Fourth Quarter 2012

  WashingtonFirst Bankshares Inc. Announces Earnings for the Fourth Quarter
  2012

Business Wire

RESTON, Va. -- February 26, 2013

WashingtonFirst Bankshares Inc. (NASDAQ: WFBI) (the “Company”), the holding
company for WashingtonFirst Bank (the “Bank”), reported unaudited consolidated
net income to common shareholders for the twelve months ended December 31,
2012 of $2.1 million or $0.62 per share (fully diluted) compared to $1.9
million or $0.65 per share (fully diluted) for the twelve months ended
December 31, 2011. For the three months ended December 31, 2012, net income to
common shareholders was $0.7 million or $0.15 per share (fully diluted)
compared to $0.4 million or $0.15 per share for the three months ended
December 31, 2011.

As previously announced, the Company completed its acquisition of Alliance
Bankshares Corporation (“Alliance”) on December 21, 2012. Excluding net
one-time merger expenses, net income to common shareholders was $3.3 million
($0.98 per fully diluted share) for the twelve months ended December 31, 2012,
an increase of $1.4 million or 70.2% from the prior year. This increase is
attributable to continued growth in loans supported by growth in lower cost,
core deposits.

Shaza Andersen, President and CEO of the Company, said, "I am extremely
pleased to report the accomplishments of our team in 2012. With the Alliance
acquisition, we increased our asset size to more than $1 billion and
significantly enhanced our market footprint in Northern Virginia. We finished
the year with more than $100 million in equity capital, and our common stock
is now publicly traded on the NASDAQ under the symbol ‘WFBI’. Finally,
excluding the impact of the Alliance acquisition, we grew our core loan and
deposit business by 12.4% and 19.0%, respectively, and exceeded our net income
budget for the year. Going forward, we expect that 2013 will be primarily
devoted to integrating the Alliance employees and customers into
WashingtonFirst and to consolidating the future benefits of the acquisition,
which we believe will be significant in the years to come."

Balance Sheet & Asset Quality

As of December 31, 2012, total assets were $1.1 billion, an increase of 105%
compared to December 31, 2011. This increase included $482 million in assets
from the acquisition of Alliance. Total loans increased $333.4 million (79.4%)
from December 31, 2011 to December 31, 2012. Excluding the Alliance
acquisition, total loans grew 2.2% from September 30, 2012 and 12.4% from
December 31, 2011. Total deposits increased $493.7 million (103.1%) from
December 31, 2011 to December 31, 2012. Excluding the Alliance acquisition,
total deposits grew 9.9% from September 30, 2012 and 19.0% from December 31,
2011.

Non-performing assets totaled $22.7 million at December 31, 2012. This is an
increase of $15.7 million over the prior period ending December 31, 2011, and
is primarily attributable to the acquisition of Alliance, which contributed
$11.4 million in non-performing assets, and a $3.5 million increase in
non-accrual loans. Net charge-offs were $1.9 million or 0.43% of average loans
for the twelve months ended December 31, 2012, compared to $0.8 million or
0.22% of average loans for the year ended December 31, 2011. This increase in
net charge-offs is primarily attributable to purchased loan participations.

In accordance with accounting for business combinations, the Company recorded
the assets and liabilities acquired from Alliance at their estimated fair
value on December 21, 2012, the acquisition date. The determination of the
fair value of the acquired assets resulted in a $10.4 million write down in
the value of certain loans and other real estate owned. This write down will
be amortized over the remaining lives of the loans.

The Company’s allowance for loan losses was 0.83% of total gross loans as of
December 31, 2012, compared to 1.17% at December 31, 2011. The decrease in
this ratio is primarily attributable to the fact that the loans acquired from
Alliance were recorded at fair value, and Alliance’s allowance for loan losses
was eliminated, in accordance with acquisition accounting rules. Based on the
Company’s internal analysis, the ratio of non-performing assets, and the
satisfactory historical performance of the loan portfolio, management believes
the allowance continues to appropriately reflect the inherent risk of loss in
the Company’s portfolio and the current economic climate.

About The Company

The Company is the parent company of the Bank, a $1.1 billion bank
headquartered in Reston, VA. With 16 offices in the greater Washington, DC
metropolitan area, WashingtonFirst is a community oriented bank that provides
competitive financial services to local businesses and consumers.

Cautionary Statements About Forward-Looking Information

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements of
the goals, intentions, and expectations of the Company as to future trends,
plans, events, results of operations and policies and regarding general
economic conditions. These forward-looking statements include, but are not
limited to, statements about the Company’s goals, intentions, earnings and
other expectations; estimates of risks and of future costs and benefits;
assessments of probable loan and lease losses; assessments of market risk; and
statements of the ability to achieve financial and other goals. Additional
forward-looking statements are included regarding the merger between the
Company and Alliance. In some cases, forward-looking statements can be
identified by use of words such as “may,” “will,” “anticipates,” “believes,”
“expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and
similar words or phrases. These statements are based upon the beliefs of the
management of the Company as to the expected outcome of future events, current
and anticipated economic conditions, nationally and in the Company’s market,
and their impact on the operations, assets and earnings of the Company,
interest rates and interest rate policy, competitive factors, judgments about
the ability of the Company to successfully integrate its operations with
Alliance, the ability to avoid customer dislocation during the period leading
up to and following the merger, and other conditions which by their nature,
are not susceptible to accurate forecast and are subject to significant
uncertainty. Because of these uncertainties and the assumptions on which this
discussion and the forward-looking statements are based, actual future
operations and results in the future may differ materially from those
indicated herein. Readers are cautioned against placing undue reliance on such
forward-looking statements. Past results are not necessarily indicative of
future performance. The Company assumes no obligation to revise, update, or
clarify forward-looking statements to reflect events or conditions after the
date of this release.

Additional documents are available free of charge at the SEC’s web site,
www.sec.gov and on the Company’s website at www.wfbi.com under the tab “About
the Bank” and then under the heading “Investor Relations” or by contacting the
Company’s Investor Relations Department at 11921 Freedom Drive, Suite 250,
Reston, VA 20190. You may also read and copy any reports, statements and other
information filed with the SEC at the SEC’s Public Reference Room at 100 F
Street, NE, Washington DC. Information about the operation of the SEC Public
Reference Room may be obtained by calling the SEC at 1-800-SEC-0330.

Information about the directors and executive officers of the Company is set
forth in the Company’s proxy statement and prospectus dated November 9, 2012
available on the SEC’s website at www.sec.gov.


WashingtonFirst Bankshares Inc.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
                                                    
                             Three months ended        Twelve months ended
                             12/31/2012  12/31/2011   12/31/2012  12/31/2011
                             Unaudited                 Unaudited
RESULTS OF OPERATIONS:
Net interest income          $ 6,380      $ 5,358      $ 22,927     $ 19,378
Provision for loan losses    639          806          3,225        2,301
Non-interest income          2,915        407          3,884        1,159
Non-interest expense         7,726        4,036        20,178       13,835
Income before taxes          930          923          3,408        4,401
Income tax                   211          446          1,173        1,794
Net income                   719          477          2,235        2,607
Dividend on preferred        44           44           178          677
shares
Net income - common          $ 675        $ 433        $ 2,057      $ 1,930
                                                                    
PER SHARE DATA:
Basic earnings per share     $ 0.15       $ 0.15       $ 0.63       $ 0.67
Diluted earnings per share   $ 0.15       $ 0.15       $ 0.62       $ 0.65
Book value per common        $ 11.73      $ 12.26      $ 11.73      $ 12.26
share
Tangible book value per      $ 11.16      $ 11.03      $ 11.16      $ 11.03
common share
Wgt Average shares – basic   4,337,954    2,909,186    3,267,478    2,901,175
Wgt Average shares –         4,458,625    2,961,619    3,338,152    2,967,021
diluted
Common shares outstanding    7,143,781    2,909,186    7,143,781    2,909,186
                                                                    
NON-GAAP MEASURES:
Net income - common,
excluding net one-time       $ 699        $ 433        $ 3,283      $ 1,930
merger related effects
Basic earnings per share,
excluding net one-time       $ 0.16       $ 0.15       $ 1.00       $ 0.67
merger related effects
Diluted earnings per
share, excluding net         $ 0.16       $ 0.15       $ 0.98       $ 0.65
one-time merger related
effects
                                                                    
SELECTED RATIOS:
Return on average assets,    0.45%        0.36%        0.39%        0.53%
annualized
Return on average equity,    4.62%        3.56%        3.96%        5.24%
annualized
Return on average common     6.27%        4.84%        5.78%        7.58%
equity, annualized
Net interest margin          4.03%        4.07%        4.08%        4.02%
Efficiency ratio             80.66%       60.31%       71.09%       66.33%
                                                                    
                             As of
                             12/31/2012   12/31/2011
                             Unaudited
BALANCE SHEET DATA:
Total Loans                  $ 753,355    $ 419,937
Allowance for loan loss      6,260        4,932
Earning Assets               1,111,261    550,174
Total Assets                 1,147,818    559,462
Deposits                     972,660      479,001
Stockholders’ Equity         101,580      53,477
Stockholders’ Equity         83,784       35,681
(Common)
                                                                    
ASSET QUALITY:
Restructured loans           $ 3,782      $ 3,226
Loans more than 90 days      -            -
past due
Non-accrual loans            15,550       3,078
Other real estate owned      3,294        -
Other non-performing         106          683
assets
Total non-performing         $ 22,732     $ 6,987
assets
Allowance for loan losses    0.83%        1.17%
to total loans
Allowance to                 32.38%       78.23%
non-performing loans
Net charge-offs to average   0.43%        0.22%
loans, annualized
Non-performing assets to     1.98%        1.25%
total assets
                                                                    
CAPITAL RATIOS:
Tier 1 risk-based capital    12.35%       10.73%
ratio
Total risk-based capital     14.37%       11.84%
ratio
Leverage ratio               15.23%       9.06%
Common equity to total       6.33%        6.38%
assets
                                                                    

Contact:

WashingtonFirst Bankshares Inc.
Matthew R. Johnson, 703-840-2422
Executive Vice President & Chief Financial Officer
MJohnson@WFBI.com
www.WFBI.com
 
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