RESTON, Va.--(BUSINESS WIRE)--WashingtonFirst Bankshares, Inc. (NASDAQ: WFBI) (the "Company"), announced today consolidated net income of $4.9 million and $13.3 million (or $0.39 and $1.06 per diluted common share) for the three and nine months ended September 30, 2016, respectively. Net income during the third quarter of 2016 increased 57.7% over the $3.1 million in net income (or $0.31 per diluted common share) earned during the three months ended September 30, 2015, and increased 12.3% over the prior quarter ended June 30, 2016. Year to date earnings for the nine months ended September 30, 2016, increased 53.5% over the $8.6 million (or $0.87 per diluted common share) earned during the nine months ended September 30, 2015. Additionally, the Company paid its 12th consecutive quarterly dividend of $0.06 on October 3, 2016.
Shaza Andersen, the Company's President and CEO, said, “I am excited to report our ROA was 1.09% for the third quarter 2016, compared to 0.83% for the same period last year. ROA is a strategic focus for us in 2016 and we are executing on our plan consistently each quarter. Earnings per share is strong both quarter-to-date and year-to-date and is enhanced by the mortgage and wealth management operations acquired last year from 1st Portfolio. Both businesses are exceeding our initial expectations. Asset quality remains a key priority for us - we reduced our NPAs from 0.87% as of December 31, 2015, to 0.58% as of September 30, 2016. During the final quarter of 2016, and as always, we will remain focused on premier customer service and strong financial performance, core principles that will continue to produce long-term value for our shareholders.”
The net interest margin was 3.53% and 3.47% for the three and nine months ended September 30, 2016, respectively, as compared to 3.76% and 3.74% for the same periods in 2015. This decrease is primarily attributable to the addition of $25.0 million in subordinated debt added in the fourth quarter of 2015 and competitive pressure for incremental loans and deposits. Additionally, the cost of interest bearing liabilities for the nine months ended September 30, 2016, increased 15 basis points to 1.02% compared to the same period last year, and is primarily attributable to changes in the mix of deposits. On a linked quarter basis, the net interest margin increased 16 basis points during the three months ended September 30, 2016, to 3.53% due to loan growth and the deleveraging strategy implemented at the end of the second quarter of this year. The Company remains focused on its pricing discipline on both sides of the balance sheet and on all factors contributing to net income.
Interest and fees on loans increased $2.2 million to $17.7 million for the three months ended September 30, 2016, compared to the same quarter last year. Similarly, interest and fees on loans increased $7.7 million to $50.9 million for the nine months ended September 30, 2016, compared to the same period last year. Total interest and dividend income increased by 15.0% and 18.8%, respectively, during the three and nine months ended September 30, 2016, compared to the same periods last year.
Non-interest income grew during both the three and nine months ended September 30, 2016, by $5.7 million and $17.9 million, respectively, compared to the same periods ended September 30, 2015, as a result of the successful integration of the 1st Portfolio companies acquired in July 2015. The mortgage subsidiary acquired in the 1st Portfolio acquisition contributed $6.3 million and $14.4 million to non-interest income via gain on sale of loans, respectively, during the three and nine months ended September 30, 2016, compared to $2.0 million and $2.2 million generated by the Bank's legacy mortgage operation for the same periods ending September 30, 2015. Additional fee income of $1.2 million and $3.8 million was generated by the mortgage subsidiary for the three months and nine months ended September 30, 2016, respectively. Wealth management activities began as a result of the 1st Portfolio acquisition. During the three and nine months ended September 30, 2016, $0.5 million and $1.3 million, respectively, of non-interest income was derived from the wealth division compared to $0.3 million for both the three and nine months ended September 30, 2015.
Non-interest expense grew during both the three and nine months ended September 30, 2016, by $4.4 million and $16.0 million, respectively, compared to the same periods ended September 30, 2015, primarily as a result of the new mortgage and wealth companies that resulted from the 1st Portfolio acquisition, as well as further expansion of the Bank's retail network. Total compensation and employee benefit costs have risen for the three and nine months ended September 30, 2016, compared to the same periods ended September 30, 2015, respectively, by $3.2 million and $11.7 million as a result of both organic growth and the 1st Portfolio acquisition. In addition, the Company incurred one-time debt termination expenses of $1.2 million during the nine months ended September 30, 2016. This was substantially offset by gains on the sale of available-for-sale securities as part of a deleveraging strategy.
Return on average assets increased to 1.09% and 1.01% for the three and nine months ended September 30, 2016, as compared to 0.83% and 0.81% for the three and nine months ended September 30, 2015.
| For the three months ended | For the nine months ended | |||||||||||||||
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September 30, |
September 30, |
September 30, |
September 30, |
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| ($ in thousands, except per share data) | ||||||||||||||||
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Performance Ratios: |
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| Return on average assets | 1.09 | % | 0.83 | % | 1.01 | % | 0.81 | % | ||||||||
| Return on average shareholders' equity | 10.21 | % | 8.41 | % | 9.43 | % | 8.31 | % | ||||||||
| Yield on average interest-earning assets | 4.23 | % | 4.37 | % | 4.19 | % | 4.35 | % | ||||||||
| Rate on average interest-earning liabilities | 1.01 | % | 0.87 | % | 1.02 | % | 0.87 | % | ||||||||
| Net interest spread | 3.22 | % | 3.50 | % | 3.17 | % | 3.48 | % | ||||||||
| Net interest margin | 3.53 | % | 3.76 | % | 3.47 | % | 3.74 | % | ||||||||
| Efficiency ratio (1) | 63.41 | % | 65.68 | % | 64.27 | % | 63.31 | % | ||||||||
| Net charge-offs to average loans held for investment (2) | 0.18 | % | (0.01 | )% | 0.19 | % | 0.02 | % | ||||||||
| Mortgage origination volume | $ | 386,247 | $ | 87,448 | $ | 725,810 | $ | 97,876 | ||||||||
| Assets under management | $ | 280,843 | $ | 218,070 | $ | 280,843 | $ | 218,070 | ||||||||
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Per Share Data: |
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| Basic earnings per common share | $ | 0.40 | $ | 0.31 | $ | 1.08 | $ | 0.88 | ||||||||
| Fully diluted earnings per common share | $ | 0.39 | $ | 0.31 | $ | 1.06 | $ | 0.87 | ||||||||
| Weighted average basic shares outstanding | 12,253,488 | 10,218,290 | 12,234,887 | 9,797,340 | ||||||||||||
| Weighted average diluted shares outstanding | 12,485,445 | 10,406,760 | 12,456,408 | 9,970,041 | ||||||||||||
| (1) The efficiency ratio is calculated as total non-interest expense (less debt extinguishment costs) divided by the sum of net interest income and total non-interest income (less gain on sale of AFS securities). This non-GAAP financial measure is presented to facilitate an understanding of the Company's performance. |
| (2) Annualized |
As of September 30, 2016, the Company reported total assets of $1.9 billion, compared to $1.7 billion as of December 31, 2015, and $1.6 billion as of September 30, 2015. During the first nine months of 2016, total loans held for investment increased $123.3 million or 9.4% to $1.4 billion as of September 30, 2016. This increase is attributable to organic loan growth from our existing lending team. During the first nine months of 2016, total deposits increased $199.0 million or 14.9% to $1.5 billion. The increase in deposits is due to core deposit growth in our branch network and commercial customers.
| Composition of Loans Held for Investment | |||||||||
| September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||
| ($ in thousands) | |||||||||
| Construction and development | $ | 272,171 | $ | 249,433 | $ | 200,100 | |||
| Commercial real estate | 709,020 | 657,110 | 768,985 | ||||||
| Residential real estate | 279,442 | 241,395 | 137,626 | ||||||
| Real estate loans | 1,260,633 | 1,147,938 | 1,106,711 | ||||||
| Commercial and industrial | 166,145 | 153,860 | 141,121 | ||||||
| Consumer | 4,593 | 6,285 | 8,471 | ||||||
| Total loans | 1,431,371 | 1,308,083 | 1,256,303 | ||||||
| Less: allowance for loan losses | 12,960 | 12,289 | 11,573 | ||||||
| Net loans | $ | 1,418,411 | $ | 1,295,794 | $ | 1,244,730 | |||
| Composition of Deposits | |||||||||
| September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||
| ($ in thousands) | |||||||||
| Demand deposit accounts | $ | 410,833 | $ | 304,425 | $ | 356,270 | |||
| NOW accounts | 136,319 | 115,459 | 127,167 | ||||||
| Money market accounts | 290,750 | 309,940 | 255,177 | ||||||
| Savings accounts | 216,552 | 163,289 | 154,226 | ||||||
| Time deposits up to $250,000 | 335,780 | 324,454 | 303,241 | ||||||
| Time deposits over $250,000 | 142,021 | 115,675 | 113,904 | ||||||
| Total deposits | $ | 1,532,255 | $ | 1,333,242 | $ | 1,309,985 | |||
During the first nine months of 2016, total shareholders’ equity increased $13.4 million from $178.6 million to $192.0 million an increase driven primarily by earnings offset by dividends of $2.2 million. Tangible book value per common share increased to $14.59 as of September 30, 2016, compared to $13.55 as of December 31, 2015, and $12.57 as of September 30, 2015. The capital ratios as of September 30, 2016, are listed below. The Company remains "well-capitalized" under the regulatory framework for prompt corrective action.
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September 30, |
December 31, |
September 30, |
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Capital Ratios: |
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| Total risk-based capital ratio | 14.65 | % | 14.86 | % | 11.77 | % | ||||||
| Tier 1 risk-based capital ratio | 12.15 | % | 12.22 | % | 10.73 | % | ||||||
| Common equity tier 1 risk-based capital ratio | 11.63 | % | 11.66 | % | 9.50 | % | ||||||
| Tier 1 leverage ratio | 10.33 | % | 10.67 | % | 9.60 | % | ||||||
| Tangible common equity to tangible assets (1) | 9.40 | % | 9.95 | % | 8.36 | % | ||||||
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Per Share Capital Data: |
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| Book value per common share | $ | 15.66 | $ | 14.64 | $ | 13.85 | ||||||
| Tangible book value per common share | $ | 14.59 | $ | 13.55 | $ | 12.57 | ||||||
| Common shares outstanding | 12,257,131 | 12,195,823 | 10,518,601 | |||||||||
|
(1) |
This is a non-GAAP financial measure. Refer to the table below outlining the reconciliation of tangible common equity to tangible assets. |
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Non-performing assets continue to decline. During the three months ended September 30, 2016, the Bank charged off $0.7 million in non-performing loans. Our team remains diligent and focused on minimizing criticized assets. The ratio of non-performing assets to total assets has decreased from 0.87% as of December 31, 2015, to 0.58% as of September 30, 2016.
| Non-Performing Assets | |||||||||
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September 30, |
December 31, |
September 30, |
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| ($ in thousands) | |||||||||
| Non-accrual loans | $ | 5,887 | $ | 10,201 | $ | 8,379 | |||
| 90+ days still accruing | — | 28 | 73 | ||||||
| Trouble debt restructurings still accruing | 3,184 | 4,269 | 3,959 | ||||||
| Other real estate owned | 1,969 | — | 109 | ||||||
| Total non-performing assets | $ | 11,040 | $ | 14,498 | $ | 12,520 | |||
|
September 30, |
December 31, 2015 |
September 30, |
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Allowance and Asset Quality Ratios: |
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| Allowance for loan losses to loans held for investment | 0.91 | % | 0.94 | % | 0.92 | % | |||
| Adjusted allowance for loan losses to loans held for investment (1) | 1.17 | % | 1.30 | % | 1.31 | % | |||
| Allowance for loan losses to non-accrual loans | 220.15 | % | 120.47 | % | 138.12 | % | |||
| Allowance for loan losses to non-performing assets | 117.39 | % | 84.76 | % | 92.44 | % | |||
| Non-performing assets to total assets | 0.58 | % | 0.87 | % | 0.78 | % | |||
| (1) This is a non-GAAP financial measure. Refer to the table below outlining the reconciliation of GAAP Allowance Ratio to Adjusted Allowance Ratio. |
In connection with various past acquisition activities, the Company recorded acquired loans at fair market value which consisted of pricing and credit marks. In acquisition accounting, there is no carryover of previously established allowance for loan losses, as acquired loans are recorded at fair value. The credit marks are negative purchase marks which are comparable to an allowance for loan losses. Therefore, the adjusted allowance for loan losses to adjusted total loans held for investment, which considers these marks similar to allowance for loan losses, was 1.17% as of September 30, 2016, compared to 1.30% and 1.31% as of December 31, 2015, and September 30, 2015, respectively. A reconciliation of the allowance for loan losses and related ratios to the adjusted allowance for loan losses and related ratios as of September 30, 2016, December 31, 2015, and September 30, 2015, is below. Credit purchase accounting marks are used to offset losses on loans similar to the allowance for loan loss reserves, and therefore presentation of the adjusted allowance for loan losses provides useful information regarding the allowance calculation.
| Reconciliation of GAAP Allowance Ratio to Adjusted Allowance Ratio (1) | ||||||||||||
|
September 30, |
December 31, 2015 |
September 30, |
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| ($ in thousands) | ||||||||||||
| GAAP allowance for loan losses | $ | 12,960 | $ | 12,289 | $ | 11,573 | ||||||
| GAAP loans held for investment, at amortized cost | 1,431,371 | 1,308,083 | 1,256,303 | |||||||||
| GAAP allowance for loan losses to total loans held for investment | 0.91 | % | 0.94 | % | 0.92 | % | ||||||
| GAAP allowance for loan losses | $ | 12,960 | $ | 12,289 | $ | 11,573 | ||||||
| Plus: Credit purchase accounting marks | 3,784 | 4,721 | 4,965 | |||||||||
| Adjusted allowance for loan losses | $ | 16,744 | $ | 17,010 | $ | 16,538 | ||||||
| GAAP loans held for investment, at amortized cost | $ | 1,431,371 | $ | 1,308,083 | $ | 1,256,303 | ||||||
| Plus: Credit purchase accounting marks | 3,784 | 4,721 | 4,965 | |||||||||
| Adjusted loans held for investment, at amortized cost | $ | 1,435,155 | $ | 1,312,804 | $ | 1,261,268 | ||||||
| Adjusted allowance for loan losses to total loans held for investment | 1.17 | % | 1.30 | % | 1.31 | % | ||||||
| (1) This is a non-GAAP financial measure. Credit purchase accounting marks are GAAP marks under purchase accounting guidance. |
| Reconciliation of Tangible Common Equity to Tangible Assets Ratio (1) | ||||||||||||
| September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||
| ($ in thousands) | ||||||||||||
|
Tangible Common Equity: |
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| Common Stock Voting | $ | 104 | $ | 103 | $ | 86 | ||||||
| Common Stock Non-Voting | 18 | 18 | 18 | |||||||||
| Additional paid-in capital - common | 161,918 | 160,861 | 129,258 | |||||||||
| Accumulated earnings | 28,800 | 17,740 | 14,931 | |||||||||
| Accumulated other comprehensive income/(loss) | 1,140 | (127 | ) | 1,368 | ||||||||
| Total Common Equity | $ | 191,980 | $ | 178,595 | $ | 145,661 | ||||||
|
Less Intangibles: |
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| Goodwill | $ | 11,420 | $ | 11,431 | $ | 11,450 | ||||||
| Identifiable intangibles | 1,686 | 1,888 | 1,955 | |||||||||
| Total Intangibles | $ | 13,106 | $ | 13,319 | $ | 13,405 | ||||||
| Tangible Common Equity | $ | 178,874 | $ | 165,276 | $ | 132,256 | ||||||
|
Tangible Assets: |
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| Total Assets | $ | 1,916,938 | $ | 1,674,466 | $ | 1,595,193 | ||||||
|
Less Intangibles: |
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| Goodwill | $ | 11,420 | $ | 11,431 | $ | 11,450 | ||||||
| Identifiable intangibles | 1,686 | 1,888 | 1,955 | |||||||||
| Total Intangibles | $ | 13,106 | $ | 13,319 | $ | 13,405 | ||||||
| Tangible Assets | $ | 1,903,832 | $ | 1,661,147 | $ | 1,581,788 | ||||||
| Tangible Common Equity to Tangible Assets | 9.40 | % | 9.95 | % | 8.36 | % | ||||||
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(1) Tangible common equity to tangible assets ratio is a non-GAAP financial measure that is presented to facilitate an understanding of the Company's capital structure. This table provides a reconciliation between certain GAAP amounts and this non-GAAP financial measure. |
| Segment Reporting (QTD) | ||||||||||||||||
| For the Three Months Ended September 30, 2016 | ||||||||||||||||
|
Commercial |
Mortgage |
Wealth |
Other (1) |
Consolidated |
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| ($ in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Interest income | 18,781 | 634 | — | (479 | ) | 18,936 | ||||||||||
| Gain on sale of loans | — | 6,327 | — | — | 6,327 | |||||||||||
| Other revenues | 602 | 1,208 | 474 | 55 | 2,339 | |||||||||||
| Total income | $ | 19,383 | $ | 8,169 | $ | 474 | $ | (424 | ) | $ | 27,602 | |||||
| Expenses: | ||||||||||||||||
| Interest expense | 2,571 | 479 | — | 43 | 3,093 | |||||||||||
| Salaries and employee benefits | 4,845 | 4,747 | 242 | 218 | 10,052 | |||||||||||
| Other expenses | 7,655 | 1,843 | 150 | (132 | ) | 9,516 | ||||||||||
| Total expenses | $ | 15,071 | $ | 7,069 | $ | 392 | $ | 129 | $ | 22,661 | ||||||
| Net Income (loss) | $ | 4,312 | $ | 1,100 | $ | 82 | $ | (553 | ) | $ | 4,941 | |||||
| Total assets | $ | 1,828,543 | $ | 83,644 | $ | 3,604 | $ | 1,147 | $ | 1,916,938 | ||||||
|
(1) Includes parent company and intercompany eliminations |
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| Segment Reporting (YTD) | ||||||||||||||||
| For the Nine Months Ended September 30, 2016 | ||||||||||||||||
|
Commercial |
Mortgage |
Wealth |
Other (1) |
Consolidated |
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| ($ in thousands) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Interest income | 54,238 | 1,363 | — | (939 | ) | 54,662 | ||||||||||
| Gain on sale of loans | — | 14,356 | — | — | 14,356 | |||||||||||
| Other revenues | 2,404 | 3,772 | 1,360 | 45 | 7,581 | |||||||||||
| Total income | $ | 56,642 | $ | 19,491 | $ | 1,360 | $ | (894 | ) | $ | 76,599 | |||||
| Expenses: | ||||||||||||||||
| Interest expense | 7,701 | 939 | 2 | 623 | 9,265 | |||||||||||
| Salaries and employee benefits | 14,406 | 11,421 | 728 | 654 | 27,209 | |||||||||||
| Other expenses | 22,504 | 4,356 | 433 | (431 | ) | 26,862 | ||||||||||
| Total expenses | $ | 44,611 | $ | 16,716 | $ | 1,163 | $ | 846 | $ | 63,336 | ||||||
| Net Income (loss) | $ | 12,031 | $ | 2,775 | $ | 197 | $ | (1,740 | ) | $ | 13,263 | |||||
| Total assets | $ | 1,828,543 | $ | 83,644 | $ | 3,604 | $ | 1,147 | $ | 1,916,938 | ||||||
| (1) Includes parent company and intercompany eliminations | ||||||||||||||||
The mortgage subsidiary closed on a record volume of loans during the nine months ended September 30, 2016, compared to any prior comparable nine month period in its history. During the three and nine months ended September 30, 2016, the mortgage subsidiary originated $386.2 million and $725.8 million, respectively, of total loan volume. During the nine months ended September 30, 2016, 62.6% of the mortgage loan volume was for purchase money mortgage loans, whereas only 53.0% of the mortgage volume for the nine months ended September 30, 2015, was for purchase money loans. Gain on sale of loans is highly correlated with salaries and employee benefits at the mortgage subsidiary due to commissions paid to loan officers. Assets under management grew to $280.8 million as of September 30, 2016, at the wealth management subsidiary compared to $218.1 million as of September 30, 2015.
About The Company
WashingtonFirst Bankshares, Inc., headquartered in Reston, Virginia, is the holding company for WashingtonFirst Bank, which operates 19 full-service banking offices throughout the Washington, DC, metropolitan area. In addition, the Company provides wealth management services through its subsidiary, 1st Portfolio Wealth Advisors, and mortgage banking services through the Bank's subsidiary, WashingtonFirst Mortgage Corporation. The Company's common stock is traded on the NASDAQ Stock Market under the quotation symbol "WFBI" and is included in the ABA NASDAQ Community Bank Index and the Russell 2000® index. For more information about the Company, please visit: www.wfbi.com.
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. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors which include, but are not limited to, factors discussed in our Annual Report on Form 10-K and in other documents we file with the Securities and Exchange Commission from time to time. 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 following significant transactions including, but not limited to, mergers and acquisitions, the ability to avoid customer dislocation during the period leading up to and following such transactions, and other conditions which by their nature, are not susceptible to accurate forecast and are subject to significant uncertainty. Readers are cautioned against placing undue reliance on such forward-looking statements. 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 website, www.sec.gov and on the Company’s website at www.wfbi.com under the tab “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, D.C. Information about the operation of the SEC Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330.
| WashingtonFirst Bankshares, Inc. | ||||||||||||
| Consolidated Balance Sheets | ||||||||||||
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(unaudited) |
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September 30, |
December 31, |
September 30, |
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| ($ in thousands) | ||||||||||||
| Assets: | ||||||||||||
| Cash and cash equivalents: | ||||||||||||
| Cash and due from bank balances | $ | 3,262 | $ | 3,739 | $ | 3,973 | ||||||
| Federal funds sold | 127,965 | 59,014 | 60,092 | |||||||||
| Interest bearing deposits | 100 | — | — | |||||||||
| Cash and cash equivalents | 131,327 | 62,753 | 64,065 | |||||||||
| Investment securities, available-for-sale, at fair value | 238,022 | 220,113 | 201,150 | |||||||||
| Restricted stock, at cost | 7,019 | 6,128 | 5,694 | |||||||||
| Loans held for sale, at lower of cost or fair value | 62,847 | 36,494 | 28,495 | |||||||||
| Loans held for investment: | ||||||||||||
| Loans held for investment, at amortized cost | 1,431,371 | 1,308,083 | 1,256,303 | |||||||||
| Allowance for loan losses | (12,960 | ) | (12,289 | ) | (11,573 | ) | ||||||
| Total loans held for investment, net of allowance | 1,418,411 | 1,295,794 | 1,244,730 | |||||||||
| Premises and equipment, net | 7,301 | 7,374 | 7,044 | |||||||||
| Goodwill | 11,420 | 11,431 | 11,450 | |||||||||
| Identifiable intangibles | 1,686 | 1,888 | 1,955 | |||||||||
| Deferred tax asset, net | 7,333 | 8,116 | 6,846 | |||||||||
| Accrued interest receivable | 4,406 | 4,502 | 4,283 | |||||||||
| Other real estate owned | 1,969 | — | 109 | |||||||||
| Bank-owned life insurance | 13,791 | 13,521 | 13,428 | |||||||||
| Other assets | 11,406 | 6,352 | 5,944 | |||||||||
| Total Assets | $ | 1,916,938 | $ | 1,674,466 | $ | 1,595,193 | ||||||
| Liabilities and Shareholders' Equity: | ||||||||||||
| Liabilities: | ||||||||||||
| Non-interest bearing deposits | $ | 410,833 | $ | 304,425 | $ | 356,270 | ||||||
| Interest bearing deposits | 1,121,422 | 1,028,817 | 953,715 | |||||||||
| Total deposits | 1,532,255 | 1,333,242 | 1,309,985 | |||||||||
| Other borrowings | 22,479 | 6,942 | 8,407 | |||||||||
| FHLB advances | 121,343 | 110,087 | 99,952 | |||||||||
| Long-term borrowings | 32,988 | 32,884 | 10,156 | |||||||||
| Accrued interest payable | 1,390 | 912 | 706 | |||||||||
| Other liabilities | 14,503 | 11,804 | 11,428 | |||||||||
| Total Liabilities | 1,724,958 | 1,495,871 | 1,440,634 | |||||||||
| Commitments and contingent liabilities | — | — | — | |||||||||
| Shareholders' Equity: | ||||||||||||
| Preferred stock: | ||||||||||||
| Series D, $5.00 par value, 0, 0, and 8,898 shares issued and outstanding, respectively, 1% dividend | — | — | 44 | |||||||||
| Additional paid-in capital - preferred | — | — | 8,854 | |||||||||
| Common stock: | ||||||||||||
| Common Stock Voting, $0.01 par value, 50,000,000 shares authorized, 10,439,289; 10,377,981 and 8,700,759 shares issued and outstanding, respectively | 104 | 103 | 86 | |||||||||
| Common Stock Non-Voting, $0.01 par value, 10,000,000 shares authorized; 1,817,842 shares issued and outstanding for all periods presented | 18 | 18 | 18 | |||||||||
| Additional paid-in capital | 161,918 | 160,861 | 129,258 | |||||||||
| Accumulated earnings | 28,800 | 17,740 | 14,931 | |||||||||
| Accumulated other comprehensive income/(loss) | 1,140 | (127 | ) | 1,368 | ||||||||
| Total Shareholders' Equity | 191,980 | 178,595 | 154,559 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,916,938 | $ | 1,674,466 | $ | 1,595,193 | ||||||
| WashingtonFirst Bankshares, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
|
(unaudited) |
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| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
| ($ in thousands, except per share data) | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Interest and fees on loans | $ | 17,703 | $ | 15,504 | $ | 50,930 | $ | 43,258 | ||||||||
| Interest and dividends on investments: | ||||||||||||||||
| Taxable | 1,102 | 832 | 3,272 | 2,334 | ||||||||||||
| Tax-exempt | 25 | 15 | 66 | 51 | ||||||||||||
| Dividends on other equity securities | 56 | 69 | 208 | 186 | ||||||||||||
| Interest on Federal funds sold and other short-term investments | 50 | 42 | 186 | 195 | ||||||||||||
| Total interest and dividend income | 18,936 | 16,462 | 54,662 | 46,024 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 2,232 | 1,653 | 6,427 | 4,622 | ||||||||||||
| Interest on borrowings | 861 | 647 | 2,838 | 1,762 | ||||||||||||
| Total interest expense | 3,093 | 2,300 | 9,265 | 6,384 | ||||||||||||
| Net interest income | 15,843 | 14,162 | 45,397 | 39,640 | ||||||||||||
| Provision for loan losses | 1,035 | 925 | 2,640 | 2,475 | ||||||||||||
| Net interest income after provision for loan losses | 14,808 | 13,237 | 42,757 | 37,165 | ||||||||||||
| Non-interest income: | ||||||||||||||||
| Service charges on deposit accounts | 54 | 106 | 214 | 337 | ||||||||||||
| Earnings on bank-owned life insurance | 90 | 92 | 270 | 281 | ||||||||||||
| Gain on sale of other real estate owned, net | 11 | 14 | 11 | 131 | ||||||||||||
| Gain on sale of loans, net | 6,327 | 2,017 | 14,356 | 2,183 | ||||||||||||
| Mortgage banking activities | 1,215 | 289 | 3,772 | 289 | ||||||||||||
| Wealth management income | 467 | 268 | 1,338 | 268 | ||||||||||||
| Gain/(loss) on sale of available-for-sale investment securities, net | 135 | (12 | ) | 1,287 | 10 | |||||||||||
| Other operating income | 367 | 148 | 689 | 586 | ||||||||||||
| Total non-interest income | 8,666 | 2,922 | 21,937 | 4,085 | ||||||||||||
| Non-interest expense: | ||||||||||||||||
| Compensation and employee benefits | 10,052 | 6,803 | 27,209 | 15,506 | ||||||||||||
| Premises and equipment | 1,802 | 1,641 | 5,482 | 4,630 | ||||||||||||
| Data processing | 1,058 | 879 | 3,183 | 2,615 | ||||||||||||
| Professional fees | 377 | 260 | 1,046 | 923 | ||||||||||||
| Merger expenses | 30 | 313 | 30 | 554 | ||||||||||||
| Mortgage loan processing expenses | 444 | 109 | 994 | 109 | ||||||||||||
| Debt extinguishment | 155 | — | 1,199 | — | ||||||||||||
| Other operating expenses | 1,693 | 1,224 | 4,504 | 3,338 | ||||||||||||
| Total non-interest expense | 15,611 | 11,229 | 43,647 | 27,675 | ||||||||||||
| Income before provision for income taxes | 7,863 | 4,930 | 21,047 | 13,575 | ||||||||||||
| Provision for income taxes | 2,922 | 1,774 | 7,784 | 4,862 | ||||||||||||
| Net income | 4,941 | 3,156 | 13,263 | 8,713 | ||||||||||||
| Preferred stock dividends | — | (22 | ) | — | (73 | ) | ||||||||||
| Net income available to common shareholders | $ | 4,941 | $ | 3,134 | $ | 13,263 | $ | 8,640 | ||||||||
| Earnings per common share: | ||||||||||||||||
| Basic earnings per common share | $ | 0.40 | $ | 0.31 | $ | 1.08 | $ | 0.88 | ||||||||
| Diluted earnings per common share | $ | 0.39 | $ | 0.31 | $ | 1.06 | $ | 0.87 | ||||||||
| Average Balances, Interest Income and Expense and Average Yield and Rates (QTD) | ||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
|
Average Balance |
Income/ Expense |
Yield/ Rate (6) |
Average Balance |
Income/ Expense |
Yield/ Rate (6) |
|||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans (1) | $ | 1,468,424 | $ | 17,703 | 4.72 | % | $ | 1,229,792 | $ | 15,504 | 4.93 | % | ||||||||||
| Investment securities - taxable | 239,119 | 1,102 | 1.80 | % | 189,852 | 832 | 1.71 | % | ||||||||||||||
| Investment securities - tax-exempt (2) | 6,006 | 30 | 1.98 | % | 2,509 | 19 | 3.18 | % | ||||||||||||||
| Other equity securities | 5,494 | 56 | 4.07 | % | 6,414 | 69 | 4.27 | % | ||||||||||||||
| Interest-bearing balances | 100 | — | 0.60 | % | — | — | — | % | ||||||||||||||
| Federal funds sold | 34,806 | 50 | 0.57 | % | 44,891 | 42 | 0.37 | % | ||||||||||||||
| Total interest earning assets | 1,753,949 | 18,941 | 4.23 | % | 1,473,458 | 16,466 | 4.37 | % | ||||||||||||||
| Non-interest earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 2,849 | 4,907 | ||||||||||||||||||||
| Premises and equipment | 7,477 | 6,798 | ||||||||||||||||||||
| Other real estate owned | 2,121 | 183 | ||||||||||||||||||||
| Other assets (3) | 47,373 | 42,965 | ||||||||||||||||||||
| Less: allowance for loan losses | (12,627 | ) | (10,785 | ) | ||||||||||||||||||
| Total non-interest earning assets | 47,193 | 44,068 | ||||||||||||||||||||
| Total Assets | $ | 1,801,142 | $ | 1,517,526 | ||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 127,801 | $ | 93 | 0.29 | % | $ | 111,758 | $ | 70 | 0.25 | % | ||||||||||
| Money market deposit accounts | 262,080 | 395 | 0.60 | % | 235,004 | 289 | 0.49 | % | ||||||||||||||
| Savings accounts | 228,047 | 409 | 0.71 | % | 136,834 | 238 | 0.69 | % | ||||||||||||||
| Time deposits | 477,763 | 1,335 | 1.11 | % | 418,851 | 1,056 | 1.00 | % | ||||||||||||||
| Total interest-bearing deposits | 1,095,691 | 2,232 | 0.81 | % | 902,447 | 1,653 | 0.73 | % | ||||||||||||||
| FHLB advances | 85,407 | 318 | 1.46 | % | 116,990 | 422 | 1.41 | % | ||||||||||||||
| Other borrowings and long-term borrowings | 39,840 | 543 | 5.40 | % | 20,934 | 225 | 4.24 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,220,938 | 3,093 | 1.01 | % | 1,040,371 | 2,300 | 0.87 | % | ||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 375,629 | 316,223 | ||||||||||||||||||||
| Other liabilities | 12,126 | 12,091 | ||||||||||||||||||||
| Total non-interest-bearing liabilities | 387,755 | 328,314 | ||||||||||||||||||||
| Total Liabilities | 1,608,693 | 1,368,685 | ||||||||||||||||||||
| Shareholders’ Equity | 192,449 | 148,841 | ||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,801,142 | $ | 1,517,526 | ||||||||||||||||||
| Interest Spread (4) | 3.22 | % | 3.50 | % | ||||||||||||||||||
| Net Interest Margin (2)(5) | $ | 15,848 | 3.53 | % | $ | 14,166 | 3.76 | % | ||||||||||||||
|
(1) |
Includes loans held for sale and loans placed on non-accrual status. |
|
|
(2) |
Yield and income presented on a fully taxable equivalent basis using a federal statutory rate of 35 percent. |
|
|
(3) |
Includes intangibles, deferred tax asset, accrued interest receivable, bank-owned life insurance and other assets. |
|
|
(4) |
Interest spread is the average yield earned on earning assets, less the average rate incurred on interest bearing liabilities. |
|
|
(5) |
Net interest margin is net interest income, expressed as a percentage of average earning assets. |
|
|
(6) |
Annualized income/expense is used for the yield/rate. |
|
| Average Balances, Interest Income and Expense and Average Yield and Rates (YTD) | ||||||||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||||||||
| September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
|
Average Balance |
Income/ Expense |
Yield/ Rate (6) |
Average Balance |
Income/ Expense |
Yield/ Rate (6) |
|||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||
| Assets | ||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||
| Loans (1) | $ | 1,414,289 | $ | 50,930 | 4.73 | % | $ | 1,143,556 | $ | 43,258 | 4.99 | % | ||||||||||
| Investment securities - taxable | 246,686 | 3,272 | 1.74 | % | 179,730 | 2,334 | 1.71 | % | ||||||||||||||
| Investment securities - tax-exempt (2) | 4,644 | 81 | 2.27 | % | 2,688 | 65 | 3.20 | % | ||||||||||||||
| Other equity securities | 6,115 | 208 | 4.55 | % | 6,026 | 186 | 4.12 | % | ||||||||||||||
| Interest-bearing balances | 81 | 1 | 1.98 | % | 5,668 | 27 | 0.64 | % | ||||||||||||||
| Federal funds sold | 44,005 | 185 | 0.56 | % | 57,061 | 168 | 0.39 | % | ||||||||||||||
| Total interest earning assets | 1,715,820 | 54,677 | 4.19 | % | 1,394,729 | 46,038 | 4.35 | % | ||||||||||||||
| Non-interest earning assets: | ||||||||||||||||||||||
| Cash and due from banks | 2,515 | 3,757 | ||||||||||||||||||||
| Premises and equipment | 7,607 | 6,360 | ||||||||||||||||||||
| Other real estate owned | 1,534 | 307 | ||||||||||||||||||||
| Other assets (3) | 47,375 | 38,433 | ||||||||||||||||||||
| Less: allowance for loan losses | (12,399 | ) | (10,005 | ) | ||||||||||||||||||
| Total non-interest earning assets | 46,632 | 38,852 | ||||||||||||||||||||
| Total Assets | $ | 1,762,452 | $ | 1,433,581 | ||||||||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 122,218 | $ | 269 | 0.29 | % | $ | 104,942 | $ | 188 | 0.24 | % | ||||||||||
| Money market deposit accounts | 275,039 | 1,226 | 0.60 | % | 217,739 | 794 | 0.49 | % | ||||||||||||||
| Savings accounts | 205,095 | 1,090 | 0.71 | % | 129,938 | 666 | 0.69 | % | ||||||||||||||
| Time deposits | 467,384 | 3,842 | 1.10 | % | 402,958 | 2,974 | 0.99 | % | ||||||||||||||
| Total interest-bearing deposits | 1,069,736 | 6,427 | 0.80 | % | 855,577 | 4,622 | 0.72 | % | ||||||||||||||
| FHLB advances | 103,783 | 1,216 | 1.54 | % | 106,717 | 1,171 | 1.45 | % | ||||||||||||||
| Other borrowings and long-term borrowings | 39,284 | 1,622 | 5.49 | % | 18,865 | 591 | 4.16 | % | ||||||||||||||
| Total interest-bearing liabilities | 1,212,803 | 9,265 | 1.02 | % | 981,159 | 6,384 | 0.87 | % | ||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||
| Demand deposits | 348,836 | 302,524 | ||||||||||||||||||||
| Other liabilities | 12,885 | 9,727 | ||||||||||||||||||||
| Total non-interest-bearing liabilities | 361,721 | 312,251 | ||||||||||||||||||||
| Total Liabilities | 1,574,524 | 1,293,410 | ||||||||||||||||||||
| Shareholders’ Equity | 187,928 | 140,171 | ||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,762,452 | $ | 1,433,581 | ||||||||||||||||||
| Interest Spread (4) | 3.17 | % | 3.48 | % | ||||||||||||||||||
| Net Interest Margin (2)(5) | $ | 45,412 | 3.47 | % | $ | 39,654 | 3.74 | % | ||||||||||||||
|
(1) |
Includes loans held for sale and loans placed on non-accrual status. |
|
|
(2) |
Yield and income presented on a fully taxable equivalent basis using a federal statutory rate of 35 percent. |
|
|
(3) |
Includes intangibles, deferred tax asset, accrued interest receivable, bank-owned life insurance and other assets. |
|
|
(4) |
Interest spread is the average yield earned on earning assets, less the average rate incurred on interest bearing liabilities. |
|
|
(5) |
Net interest margin is net interest income, expressed as a percentage of average earning assets. |
|
|
(6) |
Annualized income/expense is used for the yield/rate. |
|
