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
WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter 2013
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