Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Investor Presentation (August 2017)
28 slides from Potomac Bancshares's investor presentation, Aug 9, 2017
Slide 1: Investor Presentation - Potomac Bancshares, Inc.
Investor Presentation Potomac Bancshares, Inc. + @ ; August 9, 2017 Bank Charles Town We Simplify Your Financial Life
Slide 2: Forward-Looking Statements
FORWARD — LOOKING STATEMENTS A Warning about Forward-Looking Information This presentation contains statements that are based on other than historical data and that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide curr
Slide 3: Corporate Profile
CORPORATE PROFILE * Potomac Bancshares, Inc. is a growing profitable community bank located in the Tri-State region of West Virginia, Virginia, and Maryland * Experienced Leadership Team with committed, diversified Board of Directors Ticker PTBS Common Shares Outstanding 3,345,001 Market Capitalizat
Slide 4: Years Strong
147 YEARS STRONG A few short years after the end of the Civil War, a group comprised of 38 far-sighted Jefferson County, West Virginia farmers, orchardists, and business leaders saw the need for a bank to serve as a principal stabilizing influence on Jefferson County. They pooled some of their finan
Slide 5: BCT Business Lines
BCT BUSINESS LINES Commercial Banking One Financial Center Mortgage Banking ¢ 7 Banking Offices ¢ Full Trust Services * Secondary Market through * Commercial Banking ¢ Investment Brokerage through broker relationships * Treasury Management A * Portfolio Lending + Lending BCT Investments D SINTON GF
Slide 6: BCT Banking Office Map
BCT Banking Office Map ¢ 4 Banking Offices are located suburbs of Washington DC MSA ¢ 3 Banking Offices are located in adjoining counties BCT
Slide 7: Experienced Leadership Team
Experienced Leadership Team Alice P. Frazier President & CEO <1 year 26 EVP & COO - CFNL & MBRG Dean Cognetti SVP & CFO 6 30 SVP / M&A Manager with BB&T, Comptroller with One Valley Bank Joshua E. Householder SVP, Commercial Banking 14 14 Senior banking officer with 14 years in the market with BCT T
Slide 8: Strong Branch Growth Rates
STRONG BRANCH GROWTH RATES 201 2015) 2011 out at 2011-201 Deposi Deposits} Deposi Growth Rai Growth Ra Street Address City State ($000) ($000) ($000 {(% (%! [1101 Frederick St Hagerstown JMD_ 19,69; 10,641 84.21) 1111 E Washington St Charles Town Ww 189,255 168,693) 164,185 12.19 15.27 115 The Plain
Slide 9: Market Share by County
MARKET SHARE BY COUNTY Continued growth in markets 2016 2016 2015 2015 Total Total 2016 Total Total Total 2016 Deposits in Market Deposits for Deposits in Market Number of Market Share Institutions in Market Share County Rank Branches ($000) (%) Market ($000) ($000) (%) Jefferson, WV 1 3 240,882 30.
Slide 10: Full Employment in Market Area
FULL EMPLOYMENT IN MARKET AREA Location | 5/31/2017 Continued grow in new Jobs in: Berkeley County, WV Jeffe rson County, wy 2.4% ‘WVU Medicine, 375 new professional jobs coming (2018-2019) Berkeley County, WV 2.9% + Proctor &Gamble new mfg, plant, 700 full time jobs (40 2017} Frederick County, MD 3
Slide 11: Market Demographics
MARKET DEMOGRAPHICS Projected| Media Projected] Company Deposit Total] Population} Population} HH HH Income Number Depo: Market) Population; Change! Change) —Incom: Change Marketi off in Mark Share 2017; 2030-2017) 2017-2022) 2017) +2017-2022) [County Rank Branches ($000) (%) {Actual} (9%) (%) (3) {
Slide 12: Financial Highlights
FINANCIAL H IGH LIG HTSvo00s, EXCEPT PER SHARE DATA) 2011 2012 2013 2014 2015 2016 YTD 6/30/17 Balance Sheet Total Assets $287,393 $296,811 $296,694 $320,919 $351,757 $383,706 $411,126 Total Loans $207,245 $215,008 $231,385 $256,025 $280,111 $332,599 $348,890 Total Deposits and Sweeps $256,532 $266,
Slide 13: Growing Balance Sheet - Total Assets
GROWING BALANCE SHEET — TOTAL ASSETS $450,000 $400,000 3 $350,000 B 3 é é © $300,000 $250,000 fl $200,000 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 06/30/17 iA Town
Slide 14: Loan and Deposit Growth
LOAN AND DePposiT GROWTH $360,000 $340,000 $320,000 $300,000 #3 $280,000 © $260,000 $240,000 $220,000 200,000 $ 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 06/30/17 loans $207,245 $215,008 $231,385 $256,025 $280,111 $332,599 $348,890 B Deposits $253,117 $261,563 $259,180 $277,156 $303,535
Slide 15: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION m Other Construct. & = Total Consumer 3% sna Dav 2% % ® Total C&l ¢ Average loan yield = 4.45% ° Diversified portfolio Tot 1-4 Fam 47% A% Banks Town
Slide 16: Loan Concentrations
LOAN CONCENTRATIONS quawysequy jenpinipul - @poD On| Suopenuelip snomyey - TET] SrauopUmesd YHEBH 4940 8 “sISpUAg ‘SIORON - Tz9 ‘$19quaD BusBeus 3 ysOUREI - STZS) ssequay Ausiiawy Bujpuewseess - ytz9) s49U0] YEA YI}EBH 19490 - ET ZS} ‘sysusq - 2729 ‘SuepysAyd JO S34YO - TTZ9| 8.6%) 11.0%) 2.6%) 4.3%
Slide 17: Improving Asset Quality
IMPROVING ASSET QUALITY Non Performing Assets ({Non-accrual loans and OREO) $16,000 Enhanced credit underwriting and administration have led to improved $14,000 $13,636 credit quality : $12,000 * All loans with TBE greater than $2.5 ¥ $10,000 million is approved by the Board of = $8,821 Directors 3
Slide 18: Deposit Composition
DEPOSIT COMPOSITION Jambo Tine OrPoss —Nonint bear Dep ° Average cost of funding = 0.54% fetal time De ° 29% of deposits are transaction 20% accounts Tensionacoms © Deposit fee income approximates a 1.8% of total demand deposits ° Non-maturity deposits average life exceeds 10 years raid BCI 47% 7
Slide 19: One Financial Center
ONE FINANCIAL CENTER Total Assets from Trust and BCT Investments (000s): 6/30/16 6/30/17 Percent Change $150,219 $158,623 6% 2017 YTD 6/30 Non-Interest Income: > 5.559M (23% of bank's core non-interest income) 2016 Non-Interest Income: > $1,173M (27% of bank’s core non-interest income)
Slide 20: Dividends to Our Shareholders
DIVIDENDS TO OUR SHAREHOLDERS
Slide 21: Strategic Initiatives
STRATEGIC INITIATIVES Organic growth * Deepen market share in Loudoun County, VA; Berkeley County, WV and Washington County, MD ¢ Build new markets around seasoned bankers with a focus on Washington DC Metro MSA and adjoining counties ¢ Enhance and expand mortgage banking to improve fee income Focus
Slide 22: Investment Summary
INVESTMENT SUMMARY *Bank well positioned for growth * Opportunity for organic growth in existing and new markets * Opportunistic M&A ° Strong, experienced leadership team ° Conservative culture ° Focused on service quality for clients as differentiator Attractive Valuation ° Stable net interest marg
Slide 23: Potomac Bancshares, Inc.
Potomac Bancshares, Inc. Bank « Charles Town We Simplify Your Financial Life
Slide 24: Appendix
APPENDIX
Slide 25: Major Employers - Jefferson County, WV
MAJOR EMPLOYERS Jefferson County, WV *PNGI Charles Town Gaming *Jefferson County Board of Education *Shepherd University *American Public University System *Jefferson Medical Center *Wal-Mart Stores, Inc. *Royal Vendors, Inc. *Department of the Interior (National Park Service) Jefferson County Commi
Slide 26: Major Employers - Berkeley County, WV
MAJOR EMPLOYERS Berkeley County, WV *Berkeley County Board of Education: 2,300 *US Department of Veterans Affairs: 1,569 *Quad Graphics Inc.: 1,357 *WV Air National Guard: 1,230 *Berkeley Medical Center: 900 *Enterprise Computing Center (IRS): 900 *Macy’s Corporate Services Inc.: 700 *Bureau Alcohol
Slide 27: Major Employers - Loudoun County, VA
MAJOR EMPLOYERS Loudoun County, VA *Loudoun County Public Schools: 10,000+ *Loudoun County Govt Public Administration: 1,000-4,999 *Verizon Business information: 1,000-4,999 *US Dept. of Homeland Security: 1,000-4,999 *Orbital Sciences Corporation Dulles Manufacturing: 1,000-4,999 *United Air Lines
Slide 28: Major Employers - Washington County, MD
MAJorR EMPLOYERS Washington County, MD *Meritus Medical Center: 2,740 *Citi: 2,300 *First Data: 2,183 *Volvo Group Trucks: 1,300 *FedEx Ground: 900 *Hagerstown Community College: 890 *Bowman Group, LLC (The): 745 *Merkle Response Management Group: 545 *ARC of Washington County: 500 *Direct Mail Proc
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