WashingtonFirst Bankshares Inc. Announces Earnings for the Third Quarter 2013

  WashingtonFirst Bankshares Inc. Announces Earnings for the Third Quarter
  2013

Business Wire

RESTON, Va. -- October 18, 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
September30, 2013 of $2.1million ($0.27 per diluted common share) compared
to $0.3million ($0.11 per diluted common share) for the three months ended
September30, 2012. For the nine months ended September30, 2013, the
Company's net income to common shareholders was $5.0million ($0.65 per
diluted common share), compared to $1.4million ($0.44 per diluted common
share) for the nine months ended September30, 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 third quarter for the Bank in earnings and performance
ratios. As we continue 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 Nine Months Ended
                     September 30,     September       September       September 30,
                     2013            30,             30,           2012
                                       2012            2013
Performance
Ratios:
Return on
average assets         0.80      %     0.27      %     0.65      %       0.37      %
(1)
Return on
average                8.06      %     2.79      %     6.56      %       3.70      %
shareholders'
equity (1)
Return on
average common         9.49      %     3.67      %     7.70      %       5.01      %
equity (1)
Yield on average
interest-earning       4.30      %     4.93      %     4.40      %       4.89      %
assets (1)
Rate on average
interest-earning       0.81      %     1.20      %     0.86      %       1.26      %
liabilities (1)
Net interest           3.49      %     3.73      %     3.54      %       3.63      %
spread (1)
Net interest           3.73      %     4.05      %     3.80      %       3.99      %
margin (1)
Efficiency ratio       60.22     %     80.66     %     64.60     %       71.09     %
Per Share Data:
Basic earnings
per common share     $ 0.27            $   0.11        $   0.66        $ 0.45
(2)
Fully diluted
earnings per         $ 0.27            $   0.11        $   0.65        $ 0.44
common share (2)
Weighted average
basic shares           7,643,852       3,081,702       7,611,958         3,069,060
outstanding (2)
Weighted average
diluted shares         7,696,972       3,136,129       7,664,906         3,125,879
outstanding (2)
(1) Annualized.
(2)
Retroactively
adjusted to
reflect the
effect of all
stock dividends.
                 

Return on average assets for the nine months ended September30, 2013
increased by 28 basis points to 0.65 percent, compared to 0.37 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 the third quarter 2013 compared to the
third quarter 2012 is primarily attributable to greater liquidity and
accelerated amortization of purchase accounting marks related to certain loans
that prepaid in the three months ended September30, 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 September30, 2013 and December31, 2012, total assets were
$1.1billion. Total loans increased $60.3million (8.1 percent) from
December31, 2012 to September30, 2013. Total deposits decreased
$14.3million (1.5 percent) from December31, 2012 to September30, 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 $6.8million to
$111.8million as of September30, 2013, compared to $105.0million as of
December31, 2012.

                                                           
                                             September 30,      December 31,
                                              2013                2012
Capital Ratios:
Total risk-based capital ratio                13.80%              13.77%
Tier 1 risk-based capital ratio               12.67%              12.71%
Tier 1 leverage ratio                         10.52%              9.97%
Tangible common equity to tangible            7.54%               6.97%
assets
Per Share Capital Data:
Book value per common share (1)             $ 11.58             $ 11.16
Tangible book value per common share        $ 11.06             $ 10.62
(1)
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 $21.0million as of September30, 2013, compared
to $22.1million as of December31, 2012. Net charge-offs were $0.2million or
0.12 percent of average loans for the three months ended September30, 2013,
compared to $0.1million or 0.08 percent of average loans for the three months
ended September30, 2012. For the nine months ended September30, 2013 net
charge-offs were $2.6million or 0.45 percent of average loans, compared to
$1.4million or 0.42 percent for the same period in 2012.

                                                        
                                      September 30, 2013     December 31, 2012
                                      (dollars in thousands)
Non-accrual loans                     $    14,823            $      15,615
Trouble debt restructurings still     3,881                  3,036
accruing
Asset-backed debt securities          56                     106
Other real estate owned               2,221                 3,294
Total non-performing assets           $    20,981           $      22,051
                                                             
Allowance for loan losses to          0.92%                  0.83%
total loans
Non-GAAP adjusted allowance for       1.89%                  2.09%
loan losses to total loans
Allowance for loan losses to          50.65%                 40.09%
non-accrual loans
Allowance for loan losses to          35.78%                 28.39%
non-performing assets
Non-performing assets to total        1.87%                  1.92%
assets
                                                             

The Company’s allowance for loan losses was 0.92 percent of total gross loans
as of September30, 2013, compared to 0.83 percent as of December31, 2012. In
connection with the acquisition of Alliance in December 2012, the company
recorded the acquired loans at fair market value which consists of pricing and
credit marks. The credit marks are negative purchase marks which are similar
to an allowance for loan losses. Therefore, the Non-GAAP adjusted allowance
for loan losses to total loans which considers these marks similar to
allowance for loan for losses was 1.89 percent as of September30, 2013
compared to 2.09 percent as of December31, 2012.

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)
                                                        
                                      September 30, 2013     December 31, 2012
                                      (in thousands)
Assets:
Cash and cash equivalents:
Cash and due from bank balances       $   3,571              $   4,521
Federal funds sold                    140,981                208,476
Interest bearing balances             9,717                 11,210         
Cash and cash equivalents             154,269                224,207
Investment securities,                118,900                134,598
available-for-sale, at fair value
Other equity securities               2,925                  3,623
Loans:
Loans held for investment, at         814,916                753,355
amortized cost
Allowance for loan losses             (7,508          )      (6,260         )
Total loans, net of allowance         807,408                747,095
Premises and equipment, net           3,754                  3,519
Intangibles                           3,964                  4,029
Deferred tax asset, net               12,631                 11,419
Accrued interest receivable           3,207                  3,424
Other real estate owned               2,221                  3,294
Bank-owned life insurance             10,196                 5,010
Other assets                          3,716                 7,600          
Total Assets                          $   1,123,191         $   1,147,818  
                                                             
Liabilities and Shareholders'
Equity:
Liabilities:
Non-interest bearing deposits         $   259,640            $   294,439
Interest bearing deposits             698,758               678,221        
Total deposits                        958,398                972,660
Other borrowings                      12,533                 14,428
FHLB advances                         30,100                 40,813
Long-term borrowings                  9,811                  9,682
Accrued interest payable              520                    2,012
Other liabilities                     5,653                 6,703          
Total Liabilities                     1,017,015             1,046,298      
Shareholders' Equity:
Preferred stock:
Series D - 17,796 shares issued       89                     89
and outstanding, 1% dividend
Additional paid-in capital -          17,707                 17,707
preferred
Common stock:
Common Stock Voting, $0.01 par
value, 50,000,000 shares
authorized, 6,547,493 and             66                     61
6,099,629 shares outstanding,
respectively
Common Stock Non-Voting, $0.01
par value, 10,000,000 shares
authorized, 1,096,359 and             10                     10
1,044,152 shares outstanding,
respectively
Additional paid-in capital -          85,513                 80,460
common
Accumulated earnings                  4,760                  3,226
Accumulated other comprehensive       (1,969          )      (33            )
loss
Total Shareholders’ Equity            106,176               101,520        
Total Liabilities and                 $   1,123,191         $   1,147,818  
Shareholders' Equity
                                                                            

               
WashingtonFirst Bankshares, Inc.
Consolidated Statements of Operations
(unaudited)
                                                
                   For the Three Months Ended        For the Nine Months Ended
                   September 30,     September       September      September
                   2013            30,             30,          30,
                                     2012            2013           2012
                   (in thousands, except per share amounts)
Interest
income:
Interest and       $  10,669         $  6,609        $ 32,281       $ 19,112
fees on loans
Interest and
dividends on       646              340            1,843         1,109    
investments
Total interest     11,315            6,949           34,124         20,221
income
Interest
expense:
Interest on        1,165             995             3,611          3,018
deposits
Interest on        326              227            1,044         656      
borrowings
Total interest     1,491            1,222          4,655         3,674    
expense
Net interest       9,824             5,727           29,469         16,547
income
Provision for      1,800            515            3,875         2,586    
loan losses
Net interest
income after       8,024             5,212           25,594         13,961
provision for
loan losses
Non-interest
income:
Service
charges on         141               111             391            358
deposit
accounts
Gain on sale       821               —               821            —
of loans
Other
operating          572              135            1,445         611      
income
Total
non-interest       1,534             246             2,657          969
income
Non-interest
expense:
Compensation
and employee       3,432             2,266           10,087         6,198
benefits
Premises and       1,381             707             4,150          2,024
equipment
Data               775               351             2,438          1,083
processing
Professional       415               107             1,078          344
fees
Other
operating          836              1,387          2,999         2,803    
expenses
Total other        6,839            4,818          20,752        12,452   
expenses
Income before
provision          2,719             640             7,499          2,478
income taxes
Provision for      579              257            2,356         962      
income taxes
Net income         2,140             383             5,143          1,516
Preferred
stock              (44        )      (44       )     (133     )     (133     )
dividends and
accretion
Net income
available to       $  2,096         $  339         $ 5,010       $ 1,383  
common
shareholders
                                                                    
Earnings per
common share:
Basic earnings
per common         $  0.27           $  0.11         $ 0.66         $ 0.45
share (1)
Fully diluted
earnings per       $  0.27           $  0.11         $ 0.65         $ 0.44
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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