Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Shareholder Meeting (April 2021)
22 slides from Potomac Bancshares's shareholder meeting presentation, Apr 27, 2021
Slide 1: Potomac Bancshares - April 27, 2021
POTOMAC is)\71 BANCSHARES April 27, 2021
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 curren
Slide 3: Vision and Core Values
Vision Rooted in a Tradition of Neighbors Helping Neighbors, Growing our Communities Core Values (PHOTO OF EMPLOYEE CORE VALUES COMMITMENT BOARD) 3
Slide 4: Neighbors Helping Neighbors
Neighbors Helping Neighbors Support 8 Non-Profits focused on assisting those who are Food Insecure Food Drives Volunteer Hours Monetary Contributions $61,000 4
Slide 5: Payroll Protection Program Loans
Payroll Protection Program Loans Round One - $55 million, 561 Businesses 6,900 Jobs Round Two - $28 million, 353 Businesses (3/31/21) 5
Slide 6: Growing our Communities
Growing our Communities Co-founded with 3 local community banks to serve 11 counties Response to 2019 Federal Reserve Minority Owned Firm Study Collective commitment of $1,000,000 in loans 6
Slide 7: Strategic Priorities
Strategic Priorities Amazing Customer Experience at every interaction (face Provide an Amazing to face, digital, phone or community) that results in Customer Experience unsolicited referrals. • Targeted growth of commercial and small business relationships that drive loans, noninterest-bearing Grow
Slide 8: The Experience Culture
The Experience Culture 18. AMERICAN BANKER. BEST BANKS TO WORK FOR 2019 2020 Best Banks to Work For POTOMAC 7m BANCSHARES “It’s a family affair. Over two decades BCT multi-genera- iness double in They're clearly our -benk of choice.” ~ Mark Roper MARK ROPER CONSTRUCTION Charles Town, WV “tt can't be
Slide 9: Small Business Initiative
Small Business Initiative Highly experienced Small Business Banker Team Currently SBA Express Preferred Lender Become Preferred Lender for 7(a) and 504 programs Expands capacity to grow our communities LPO in Fredericksburg 9
Slide 10: Digital – Investments for the Future
Digital – Investments for the Future 10
Slide 11: Unleashing Geographic Territories
Unleashing Geographic Territories Loans Deposits 11
Slide 12: 2020 and First Quarter 2021 Results
2020 and First Quarter 2021 Results 12
Slide 13: Balance Sheet Growth
Balance Sheet Growth (‘000’s) $700,000 $661,376 $620,912 $588,510 $600,000 $548,542 $515,786 $499,816 $484,550 $493,965 $500,000 $449,880 $425,494 $424,127 $412,460 $372,159 $400,000 $363,957 $346,768 $300,000 $200,000 $100,000 $0 2017 2018 2019 2020 3/31/2021 Loans Deposits Assets 13
Slide 14: Prudent Credit Culture Drives Asset Quality
Prudent Credit Culture Drives Asset Quality Strong credit culture and Non-Performing Assets to Total Assets underwriting guidelines 0.80% BCT 0.70% Strong monitoring practices of 0.70% Local Peer concentrations, trends National Peer 0.60% 0.57% 0.63% Provided payment deferrals in 0.50% 0.42% 0
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio as of 3/31/2021 Concentrations of Credit Farm, 9% Well below regulatory guidelines: – Construction & Land = 40.47% C&I, 14% – Commercial RE = 208.41% Residential, 42% Capped Hotel Lending in 3Q2019 – O/S balances = $28.2 million Commerical RE, Office b
Slide 16: Deposits
Deposits $700,000 Strategic initiative to grow non-interest bearing deposits $600,000 as % of total deposits $500,000 – March 31, 2021 = 21% Specifically designed $400,000 products for targeted $300,000 businesses Enhanced Cash $200,000 Management Online Platform $100,000 Cost of deposits as
Slide 17: Annual Net Income & Dividends
Annual Net Income & Dividends Strategic expansion initiatives began July 2018 $4,000 50% $3,785 $3,500 $3,392 45% $3,141 $3,213 $3,000 40% $2,500 31% 35% 30% 36% $2,000 30% 29% $1,500 25% $1,158 $1,158 $1,005 $1,000 $902 20% $500 15% $0 10% 2017 2018 2019 2020 Dividends Net Income Payout % Net Incom
Slide 18: Quarterly Net Income & Dividends
Quarterly Net Income & Dividends $2,000 Increased dividend 14.3% on 45% $1,800 40% April 20, 2021 to $.08 per share $1,778 40% $1,600 35% 35% $1,400 30% 26% 25% $1,200 25% $1,098 $1,142 $1,000 $826 20% $800 $719 16% 15% $600 10% $400 $289 $289 $289 $289 $289 $200 5% $0 0% 3/1/2020 6/1/2020 9/1/2020
Slide 19: Diversified Non-Interest Income
Diversified Non-Interest Income 2020Y 1Q 2021 Deposit Deposit Other , 13% Services, Other , Services, 12% 15% 15% Secondary Secondary Interchange, Market, Interchange, Market, 27% 24% 26% 27% Wealth Wealth Advisory, Advisory, 20% 21% 19
Slide 20: Strong Capital Position as of March 31, 2021
Strong Capital Position as of March 31, 2021 18.00% 17.02% 15.77% 15.77% 16.00% 14.00% 12.00% 10.30% 10.50% 10.00% 10.00% 8.50% 8.00% 8.00% 7.00% 6.50% 6.00% 5.00% 4.00% 4.00% 2.00% 0.00% Tier 1 to Average Assets Tier 1 to Risk Weighted CET 1 to Risk Weighted Total Capital to Risk Weighted Assets As
Slide 21: April 4, 1871 – Our Story
April 4, 1871 — Our Story POTOMAC 78)\71 BANCSHARES OTC: PTBS 21
Slide 22: Thank You For Your Continued Support
Thank You For Your Continued Support 22
Potomac Bancshares — Shareholder Meeting (April 2021) on 6ix