WashingtonFirst Bankshares Inc. Announces Earnings for the Second Quarter 2013

  WashingtonFirst Bankshares Inc. Announces Earnings for the Second Quarter
  2013

Business Wire

RESTON, Va. -- July 25, 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
June30, 2013 of $1.5million ($0.20 per diluted common share) compared to
$0.3million ($0.10 per diluted common share) for the three months ended
June30, 2012. For the six months ended June30, 2013, the Company's net
income to common shareholders was $2.9million ($0.38 per diluted common
share), compared to $1.0million ($0.33 per diluted common share) for the six
months ended June30, 2012. The Company's increase in net income in 2013 is
primarily the result of the acquisition of Alliance Bankshares Corporation
("Alliance") in December 2012.

Shaza Andersen, President and CEO of the Company, said, “I am pleased to
announce a strong second quarter for the Bank in earnings and performance
ratios. As we have started to realize the benefits we anticipated from the
2012 acquisition of Alliance Bank, we have seen improvements in our
performance ratios and in our earnings per share."

                                                   
                        For the Three Months Ended   For the Six Months Ended
                        June 30, 2013  June 30,     June 30,      June 30,
                                        2012         2013           2012
Performance Ratios:
Return on average       0.59%           0.28%        0.57%          0.41%
assets (1)
Return on average
shareholders' equity    5.89%           2.79%        5.75%          4.15%
(1)
Return on average       7.09%           4.12%        6.93%          6.15%
common equity (1)
Yield on average
interest-earning        4.37%           4.92%        4.46%          4.87%
assets (1)
Rate on average
interest-earning        0.89%           1.26%        0.88%          1.29%
liabilities (1)
Net interest spread     3.48%           3.66%        3.58%          3.58%
(1)
Net interest margin     3.73%           4.01%        3.83%          3.96%
(1)
Efficiency ratio        66.95%          74.53%       66.99%         66.14%
Per Share Data:
Basic earnings per      $     0.20      $   0.11     $    0.38      $   0.34
common share (2)
Fully diluted
earnings per common     $     0.20      $   0.10     $    0.38      $   0.33
share (2)
Weighted average
basic shares            7,632,398       3,074,356    7,594,847      3,063,642
outstanding (2)
Weighted average
diluted shares          7,680,034       3,132,372    7,647,709      3,116,504
outstanding (2)
(1) Annualized.
(2) Retroactively
adjusted to reflect the
effect of all stock
dividends.
                        

Return on average assets for the six months ended June30, 2013 increased by
16 basis points to 0.57 percent, compared to 0.41 percent for the same period
in 2012. Additionally, the company has realized improved returns on both
average shareholders' equity and average common equity. The decrease in net
interest spread and margin in 2013 compared to 2012 is primarily attributable
to greater liquidity and accelerated amortization of purchase accounting marks
related to certain loans that prepaid in the second quarter of 2013. These
loans were acquired in December 2012 and had pricing marks associated with
them under purchase accounting guidance. Purchase accounting marks are
recognized into income over the life of the loan. Early payoffs create more
volatility and can distort the net interest margin, as any unamortized mark is
fully amortized upon loan payoff.

Balance Sheet and Capital

As of June30, 2013 and December31, 2012, total assets were $1.1billion.
Total loans increased $33.4million (4.5%) from December31, 2012 to June30,
2013. Total deposits decreased $15.1million (1.6%) from December31, 2012 to
June30, 2013. This decrease is primarily attributable to management's
intention to reduce non-core deposits, including brokered deposits acquired in
the acquisition of Alliance in December 2012. Tier 1 capital increased
$4.6million to $109.6million as of June30, 2013, compared to $105.0million
as of December31, 2012.

                                                          
                                             June 30, 2013   December 31, 2012
Capital Ratios:
Total risk-based capital ratio               13.92%          13.77%
Tier 1 risk-based capital ratio              12.83%          12.71%
Tier 1 leverage ratio                        10.45%          9.97%
Tangible common equity to tangible assets    7.36%           6.97%
Per Share Capital Data:
Book value per common share (1)              $    11.34      $      11.16
Tangible book value per common share (1)     $    10.82      $      10.62
Common shares outstanding (1)                7,632,398       7,500,970
(1) Retroactively adjusted to reflect the
effect of all stock dividends.
                                             

Asset Quality

Non-performing assets totaled $21.4million as of June30, 2013, compared to
$22.1million as of December31, 2012. Net charge-offs were $1.2million or
0.63 percent of average loans for the three months ended June30, 2013,
compared to $0.9million or 0.81 percent of average loans for the three months
ended June30, 2012. For the six months ended June30, 2013 net charge-offs
were $2.4million or 0.63 percent of average loans, compared to $1.3million
or 0.60 percent for the same period in 2012.

                                                          
                                             June 30, 2013   December 31, 2012
                                             (dollars in thousands)
Non-accrual loans                            $    10,903     $      15,615
90+ days past due still accruing             2,839           —
Trouble debt restructurings still accruing   5,575           3,036
Asset-backed debt securities                 55              106
Other real estate owned                      2,068           3,294
Total non-performing assets                  $    21,440     $      22,051
                                                             
Allowance for loan losses to total loans     0.76%           0.83%
Allowance for loan losses to non-accrual     54.46%          40.09%
loans
Allowance for loan losses to                 27.70%          28.39%
non-performing assets
Non-performing assets to total assets        1.91%           1.92%
                                                             

The Company’s allowance for loan losses was 0.76 percent of total gross loans
as of June30, 2013, compared to 0.83 percent as of December31, 2012. Of the
$786.5million in gross loans outstanding as of June30, 2013, $215.4million
or 27.4 percent 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 $6.2million as of June30, 2013.

About The Company

The Company is the parent company of the Bank, a $1.1billion bank
headquartered in Reston, VA. With 15 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)
                                                             
                                             June 30, 2013   December 31, 2012
                                             (in thousands)
Assets:
Cash and cash equivalents:
Cash and due from bank balances              $ 4,941         $   4,521
Federal funds sold                           170,433         208,476
Interest bearing balances                    9,717          11,210         
Cash and cash equivalents                    185,091         224,207
Investment securities, available-for-sale,   116,761         134,598
at fair value
Other equity securities                      2,925           3,623
Loans:
Loans held for investment, at amortized      786,464         753,355
cost
Allowance for loan losses                    (5,938      )   (6,260         )
Total loans, net of allowance                780,526         747,095
Premises and equipment, net                  3,480           3,519
Intangibles                                  3,986           4,029
Deferred tax asset, net                      12,449          11,419
Accrued interest receivable                  3,347           3,424
Other real estate owned                      2,068           3,294
Bank-owned life insurance                    10,109          5,010
Other assets                                 4,317          7,600          
Total Assets                                 $ 1,125,059    $   1,147,818  
Liabilities and Shareholders' Equity:
Liabilities:
Non-interest bearing deposits                $ 270,994       $   294,439
Interest bearing deposits                    686,528        678,221        
Total deposits                               957,522         972,660
Other borrowings                             18,744          14,428
FHLB advances                                30,221          40,813
Long-term borrowings                         9,768           9,682
Accrued interest payable                     585             2,012
Other liabilities                            3,884          6,703          
Total Liabilities                            1,020,724      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, 6,536,039      66              61
and 6,099,629 shares outstanding,
respectively
Common Stock Non-Voting, $0.01 par value,
10,000,000 shares authorized, 1,096,359      10              10
and 1,044,152 shares outstanding,
respectively
Additional paid-in capital - common          85,473          80,460
Accumulated earnings                         2,669           3,226
Accumulated other comprehensive loss         (1,679      )   (33            )
Total Shareholders’ Equity                   104,335        101,520        
Total Liabilities and Shareholders' Equity   $ 1,125,059    $   1,147,818  
                                                                            

                                              
WashingtonFirst Bankshares, Inc.
Consolidated Statements of Operations
(unaudited)
                                                 
                  For the Three Months Ended     For the Six Months Ended
                  June 30, 2013  June 30,       June 30, 2013  June 30, 2012
                                  2012
                  (in thousands, except per share amounts)
Interest
income:
Interest and      $  10,713       $  6,308       $  21,612       $  12,503
fees on loans
Interest and
dividends on      548            385           1,197          769        
investments
Total interest    11,261          6,693          22,809          13,272
income
Interest
expense:
Interest on       1,287           1,008          2,446           2,023
deposits
Interest on       345            223           718            429        
borrowings
Total interest    1,632          1,231         3,164          2,452      
expense
Net interest      9,629           5,462          19,645          10,820
income
Provision for     975            850           2,075          2,071      
loan losses
Net interest
income after      8,654           4,612          17,570          8,749
provision for
loan losses
Non-interest
income:
Service charges
on deposit        119             129            250             247
accounts
Other operating   510            176           873            476        
income
Total
non-interest      629             305            1,123           723
income
Non-interest
expense:
Compensation
and employee      3,412           2,121          6,655           3,932
benefits
Premises and      1,412           674            2,769           1,317
equipment
Data processing   723             391            1,663           732
Professional      253             100            663             237
fees
Other operating   1,068          1,012         2,163          1,416      
expenses
Total other       6,868          4,298         13,913         7,634      
expenses
Income before
provision         2,415           619            4,780           1,838
income taxes
Provision for     865            236           1,777          705        
income taxes
Net income        1,550           383            3,003           1,133
Preferred stock
dividends and     (45        )    (45       )    (89        )    (89        )
accretion
Net income
available to      $  1,505       $  338        $  2,914       $  1,044   
common
shareholders
                                                                 
Earnings per
common share:
Basic earnings
per common        $  0.20         $  0.11        $  0.38         $  0.34
share (1)
Fully diluted
earnings per      $  0.20         $  0.10        $  0.38         $  0.33
common 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
 
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