WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter 2013

  WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter
  2013

Business Wire

RESTON, Va. -- April 29, 2013

WashingtonFirst Bankshares Inc. (NASDAQ: WFBI) (the “Company”), the holding
company for WashingtonFirst Bank (the “Bank”), today reports unaudited
consolidated net income to common shareholders for the three months ended
March31,2013 of $1.4million ($0.18 per diluted common share) compared to
$0.7million ($0.21 per diluted common share) for the three months ended
March31, 2012. The Company's increase in net income is primarily the result
of the acquisition of Alliance Bankshares in December 2012, while the lower
earnings per diluted common share is primarily the result of the issuance of
new stock in connection with the acquisition. Net income also benefited from a
higher net interest spread and margin, as the company has been able to realize
lower rates on interest-bearing liabilities.

Shaza Andersen, President and CEO of the Company, said, “Our primary goal for
2013 is to capitalize upon the benefits we anticipated from the 2012
acquisition of Alliance Bank. I am thrilled to report that we are on plan
through the first quarter. The integration of Alliance Bank has proceeded
smoothly and we are looking forward to serving our expanded customer base in
Northern Virginia.”

                                             
                                               For the Three Months Ended
                                               March 31, 2013  March 31, 2012
Performance Ratios:
Return on average assets (1)                   0.55        %    0.55        %
Return on average shareholders' equity (1)     5.61        %    5.53        %
Return on average common equity (1)            6.77        %    8.22        %
Yield on average interest-earning assets (1)   4.54        %    4.88        %
Rate on average interest-earning liabilities   0.87        %    1.31        %
(1)
Net interest spread (1)                        3.67        %    3.57        %
Net interest margin (1)                        3.99        %    3.91        %
Efficiency ratio                               67.03       %    57.76       %
Per Share Data:
Basic earnings per common share (2)            $    0.19        $    0.22
Fully diluted earnings per common share (2)    $    0.18        $    0.21
Weighted average basic shares outstanding      7,570,091        3,271,999
(2)
Weighted average diluted shares outstanding    7,631,717        3,324,732
(2)

(1) Annualized.
(2) Retroactively adjusted to reflect the effect of all stock dividends.


The following summarizes other operating expenses in the consolidated
statements of operations for the three months ended March31,2013 and 2012:

                                     
                                       For the Three Months Ended
                                       March 31, 2013  March 31, 2012
                                       (in thousands)
Insurance                              $   25           $    18
Professional fees                      551              148
Advertising and promotional expenses   139              95
Postage, printing and supplies         55               42
Data processing                        940              341
FDIC premiums                          98               101
OREO                                   342              —
Directors' fees                        50               37
Merger expenses                        8                —
Other                                  237             100        
Other expenses                         $   2,445       $    882   
                                                                   

Balance Sheet and Capital

As of March31, 2013 and December31, 2012, total assets were $1.1billion.
Total loans increased $11.1million (1.5%) from December31, 2012 to March31,
2013. Total deposits decreased $80.6million (8.3%) from December31, 2012 to
March31, 2013. Tier 1 capital increased $3.0million to $108.0million as of
March31, 2013, compared to $105.0million as of December31, 2012.

                                                        
                                         March 31, 2013     December 31, 2012
Capital Ratios:
Total risk-based capital ratio           14.00        %     13.77          %
Tier 1 risk-based capital ratio          12.96        %     12.71          %
Tier 1 leverage ratio                    10.34        %     16.39          %
Tangible common equity to tangible       7.78         %     6.97           %
assets
Per Share Capital Data:
Book value per common share (1)          $    11.33         $     11.15
Tangible book value per common share     $    10.80         $     10.62
(1)
Common shares outstanding (1) (2)        7,632,928          7,507,254

(1) Retroactively adjusted to reflect the effect of all stock dividends.
(2) Includes estimated number of shares for the 5% stock dividend payable in
May 2013.


Asset Quality

Non-performing assets totaled $21.6million as of March31, 2013, compared to
$22.1million as of December31, 2012. Net charge-offs were $1.2million or
0.63% of average loans for the three months ended March31, 2013, compared to
$0.4million or 0.38% of average loans for the three months ended March31,
2013.

                                                          
                                            March 31, 2013   December 31, 2012
                                            (in thousands)
Non-accrual loans                           $   13,376       $    15,615
Trouble debt restructurings still           5,577            3,036
accruing
Asset-backed debt securities                51               106
Other real estate owned                     2,569           3,294         
Total non-performing assets                 $   21,573      $    22,051   
                                                                           

The Company’s allowance for loan losses was 0.81% of total gross loans as of
March31, 2013, compared to 0.83% at December31,2012. Of the $764.4million
in gross loans outstanding as of March31, 2013, $255.6million or 33.4% were
recorded on the books at fair value in conjunction with the acquisition of
Alliance in December 2012 and have an aggregate discount on the books of
$7.8million as of March 31, 2013.

About The Company

The Company is the parent company of the Bank, a $1.1billion 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 dated April30,2013 available on the
SEC’s website at www.sec.gov.

                                                          
WashingtonFirst Bankshares, Inc.
Consolidated Balance Sheets
(unaudited)
                                                             
                                            March 31, 2013   December 31, 2012
                                            (in thousands)
Assets:
Cash and cash equivalents:
Cash and due from bank balances             $  4,064         $   4,521
Federal funds sold                          138,411          208,476
Interest bearing balances                   9,965           11,210         
Cash and cash equivalents                   152,440          224,207
Investment securities,                      115,503          134,598
available-for-sale, at fair value
Other equity securities                     3,152            3,623
Loans:
Loans held for investment, at amortized     764,413          753,355
cost
Allowance for loan losses                   (6,176       )   (6,260         )
Total loans, net of allowance               758,237          747,095
Premises and equipment, net                 3,319            3,519
Intangibles                                 4,007            4,029
Deferred tax asset, net                     11,523           11,419
Accrued interest receivable                 3,230            3,424
Other real estate owned                     2,569            3,294
Bank-owned life insurance                   5,055            5,010
Other assets                                5,347           7,600          
Total Assets                                $  1,064,382    $   1,147,818  
Liabilities and Shareholders' Equity:
Liabilities:
Non-interest bearing deposits               $  223,470       $   294,439
Interest bearing deposits                   668,564         678,221        
Total deposits                              892,034          972,660
Other borrowings                            17,252           14,428
FHLB advances                               35,442           40,813
Long-term borrowings                        9,725            9,682
Accrued interest payable                    693              2,012
Other liabilities                           4,970           6,703          
Total Liabilities                           960,116         1,046,298      
Shareholders' Equity:
Preferred stock:
Series D - 17,796 shares issued and         89               89
outstanding, 1% dividend
Additional paid-in capital - preferred      17,707           17,707
Common stock:
Common Stock Voting, $0.01 par value,
50,000,000 shares authorized, 6,225,303     63               61
and 6,099,629 shares outstanding,
respectively
Common Stock Non-Voting, $0.01 par value,
10,000,000 shares authorized, 1,044,152     10               10
shares outstanding
Additional paid-in capital - common         81,962           80,460
Accumulated earnings                        4,635            3,226
Accumulated other comprehensive loss        (200         )   (33            )
Total Shareholders’ Equity                  104,266         101,520        
Total Liabilities and Shareholders'         $  1,064,382    $   1,147,818  
Equity

                                    
WashingtonFirst Bankshares, Inc.
Consolidated Statements of Operations
(unaudited)
                                      
                                      For the Three Months Ended
                                      March 31, 2013        March 31, 2012
                                      (in thousands, except per share amounts)
Interest income:
Interest and fees on loans            $     10,899           $    6,195
Interest and dividends on             649                  384           
investments
Total interest income                 11,548                 6,579
Interest expense:
Interest on deposits                  1,159                  1,015
Interest on borrowings                373                  206           
Total interest expense                1,532                1,221         
Net interest income                   10,016                 5,358
Provision for loan losses             1,100                1,221         
Net interest income after provision   8,916                  4,137
for loan losses
Non-interest income:
Service charges on deposit accounts   131                    118
Other operating income                363                  300           
Total non-interest income             494                    418
Non-interest expense:
Compensation and employee benefits    3,243                  1,811
Premises and equipment                1,357                  643
Other operating expenses              2,445                882           
Total other expenses                  7,045                3,336         
Income before provision income        2,365                  1,219
taxes
Provision for income taxes            912                  469           
Net income                            1,453                  750
Preferred stock dividends and         (44             )     (44           )
accretion
Net income available to common        $     1,409          $    706      
shareholders
                                                             
Earnings per common share:
Basic earnings per common share (1)   $     0.19             $    0.22
Fully diluted earnings per common     $     0.18             $    0.21
share (1)

(1) Retroactively adjusted to reflect the effect of all stock dividends.

Contact:

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