WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter 2013

WashingtonFirst Bankshares Inc. Announces Earnings for the First Quarter 2013

RESTON, Va.--(BUSINESS WIRE)-- WashingtonFirst Bankshares Inc. (NAS: 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 March 31, 2013 of $1.4 million ($0.18 per diluted common share) compared to $0.7 million ($0.21 per diluted common share) for the three months ended March 31, 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 (1)0.87%1.31%
Net interest spread (1)3.67%3.57%
Net interest margin (1)3.99%3.91%
Efficiency ratio67.03%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 (2)7,570,0913,271,999
Weighted average diluted shares outstanding (2)7,631,7173,324,732
(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 March 31, 2013 and 2012:

For the Three Months Ended
March 31, 2013 March 31, 2012
(in thousands)
Professional fees551148
Advertising and promotional expenses13995
Postage, printing and supplies5542
Data processing940341
FDIC premiums98101
Directors' fees5037
Merger expenses8
Other237 100 
Other expenses$2,445 $882 

Balance Sheet and Capital

As of March 31, 2013 and December 31, 2012, total assets were $1.1 billion. Total loans increased $11.1 million (1.5%) from December 31, 2012 to March 31, 2013. Total deposits decreased $80.6 million (8.3%) from December 31, 2012 to March 31, 2013. Tier 1 capital increased $3.0 million to $108.0 million as of March 31, 2013, compared to $105.0 million as of December 31, 2012.

March 31, 2013December 31, 2012

Capital Ratios:

Total risk-based capital ratio14.00%13.77%
Tier 1 risk-based capital ratio12.96%12.71%
Tier 1 leverage ratio10.34%16.39%
Tangible common equity to tangible assets7.78%6.97%

Per Share Capital Data:

Book value per common share (1)$11.33$11.15
Tangible book value per common share (1)$10.80$10.62
Common shares outstanding (1) (2)7,632,9287,507,254
(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 $21.6 million as of March 31, 2013, compared to $22.1 million as of December 31, 2012. Net charge-offs were $1.2 million or 0.63% of average loans for the three months ended March 31, 2013, compared to $0.4 million or 0.38% of average loans for the three months ended March 31, 2013.

March 31, 2013December 31, 2012
(in thousands)
Non-accrual loans$13,376$15,615
Trouble debt restructurings still accruing5,5773,036
Asset-backed debt securities51106
Other real estate owned2,569 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 March 31, 2013, compared to 0.83% at December 31, 2012. Of the $764.4 million in gross loans outstanding as of March 31, 2013, $255.6 million 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 $7.8 million as of March 31, 2013.

About The Company

The Company is the parent company of the Bank, a $1.1 billion 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 April 30, 2013 available on the SEC's website at www.sec.gov.

WashingtonFirst Bankshares, Inc.
Consolidated Balance Sheets


March 31, 2013December 31, 2012
(in thousands)
Cash and cash equivalents:
Cash and due from bank balances$4,064$4,521
Federal funds sold138,411208,476
Interest bearing balances9,965 11,210 
Cash and cash equivalents152,440224,207
Investment securities, available-for-sale, at fair value115,503134,598
Other equity securities3,1523,623
Loans held for investment, at amortized cost764,413753,355
Allowance for loan losses(6,176)(6,260)
Total loans, net of allowance758,237747,095
Premises and equipment, net3,3193,519
Deferred tax asset, net11,52311,419
Accrued interest receivable3,2303,424
Other real estate owned2,5693,294
Bank-owned life insurance5,0555,010
Other assets5,347 7,600 
Total Assets$1,064,382 $1,147,818 
Liabilities and Shareholders' Equity:
Non-interest bearing deposits$223,470$294,439
Interest bearing deposits668,564 678,221 
Total deposits892,034972,660
Other borrowings17,25214,428
FHLB advances35,44240,813
Long-term borrowings9,7259,682
Accrued interest payable6932,012
Other liabilities4,970 6,703 
Total Liabilities960,116 1,046,298 
Shareholders' Equity:
Preferred stock:
Series D - 17,796 shares issued and outstanding, 1% dividend8989
Additional paid-in capital - preferred17,70717,707
Common stock:
Common Stock Voting, $0.01 par value, 50,000,000 shares authorized, 6,225,303 and 6,099,629 shares outstanding, respectively6361
Common Stock Non-Voting, $0.01 par value, 10,000,000 shares authorized, 1,044,152 shares outstanding1010
Additional paid-in capital - common81,96280,460
Accumulated earnings4,6353,226
Accumulated other comprehensive loss(200)(33)
Total Shareholders' Equity104,266 101,520 
Total Liabilities and Shareholders' Equity$1,064,382 $1,147,818 
WashingtonFirst Bankshares, Inc.
Consolidated Statements of Operations


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 investments649  384 
Total interest income11,5486,579
Interest expense:
Interest on deposits1,1591,015
Interest on borrowings373  206 
Total interest expense1,532  1,221 
Net interest income10,0165,358
Provision for loan losses1,100  1,221 
Net interest income after provision for loan losses8,9164,137
Non-interest income:
Service charges on deposit accounts131118
Other operating income363  300 
Total non-interest income494418
Non-interest expense:
Compensation and employee benefits3,2431,811
Premises and equipment1,357643
Other operating expenses2,445  882 
Total other expenses7,045  3,336 
Income before provision income taxes2,3651,219
Provision for income taxes912  469 
Net income1,453750
Preferred stock dividends and accretion(44) (44)
Net income available to common shareholders$1,409  $706 
Earnings per common share:
Basic earnings per common share (1)$0.19$0.22
Fully diluted earnings per common share (1)$0.18$0.21
(1) Retroactively adjusted to reflect the effect of all stock dividends.

WashingtonFirst Bankshares Inc.
Matthew R. Johnson, 703-840-2422
Executive Vice President & Chief Financial Officer

KEYWORDS:   United States  North America  Virginia


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