Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Shareholder Meeting (May 2025)
23 slides from Potomac Bancshares's shareholder meeting presentation, May 20, 2025
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 20, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this document may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about
Slide 3: Vision
Vision BCT is a high performing presence in the tri-state region of WV, MD and VA The clear Bank of Choice for businesses and members of the community 3
Slide 4: Core Values
Core Values ® Integrity Work in authentic, trustworthy ways to do the right thing every time, in all interactions, with our clients and colleagues Teamwork We are accountable to each other to be a collective WE, responsible to our vision, future, and success a Growth Provide opportunities for our co
Slide 5: Potomac Bancshares Overview
Potomac Bancshares Overview 5
Slide 6: Thank You for Your Leadership
Recently Retired Executives Thank You for Your Leadership Dean Cognetti, CFO Tim Lewis, CRBO Retired 9/2024 Retired 12/2024 13 Years of Service 22 Years of Service 6
Slide 7: Welcome New Leaders
Recently Hired Executives Welcome New Leaders Shane Bell, CFO Ron Burley, CRBO Joined PTBS 12/2024 Joined PTBS 10/2024 7
Slide 8: Employee Growth
Employee Growth Promotions and Transfers: 2024 12 Promotions 8 Transfers 2025 to Date 18 Promotions 2 Transfers 8
Slide 9: Local Recognition
Local Recognition MOG 3 BEST OF a aa COMMUNITY COMMUNITY LEADERSHIP AWARDS LEADERSHIP AWARDS 2024 EXECUTIVE LEADER: Loudoun Cimes-Mirror 2024 LARGE BUSINESS WINNER FINALIST OF THE Ly READERS CHOICE AWARDS The Journal LoudounNow LOUDOUN’S FAVORITE AMERICAN BANKER, Top 200 Community Banks 2024 WINNER
Slide 10: Client Survey and Testimonials
Client Survey and Testimonials Client Survey 1 0
Slide 11: BCT Cares Foundation
BCT Cares Foundation Organizations Supported • Berkeley County Backpack BCT 2024 Volunteer Program Hours • Community Combined • 1,755 Hours Ministries • HARC/Micah’s Backpack Community • Fueled Reinvestment Act (CRA) Total BCT Cares Foundation Support • $90,000 raised in 2024 Outstanding 2x • $125,0
Slide 12: The Circle of Community Banking
The Circle of Community Banking 1. Clients deposit money into BCT Any remaining money simply 5. After interest and 2. Client money resides adds to the Bank’s capital, expenses are paid, BCT clients feel safe and secure in their checking/ pays a dividend to its savings account in the institution wher
Slide 13: Thoughtful Diversification of Commercial Banking
Thoughtful Diversification of Commercial Banking Traditional C&I lending in Commercial Real Estate SBA Lending team lift-out in Government Contractor our Core Markets led by led by seasoned, well- May 2021 of 3 seasoned business line added in seasoned, well-known known banker with bankers, each with
Slide 14: Scalable Fee Income-Based Business Lines
Scalable Fee Income-Based Business Lines • Partnered with • Partnered with Sterling • Partnered with Lender Clearstead Advisors for Financial Management, Solutions for all back- Investment a registered LPL Advisory office functions Management Firm • Better execution for • Outsourced back- • BCT rece
Slide 15: Balance Sheet Growth
Balance Sheet Growth Loans ($mm) Deposits ($mm) Assets ($mm) 11.3% 10.9% 11.2% CAGR CAGR CAGR $830.7 $877.3 $895.6 $772.4 $756.1 $739.7 $754.4 $704.1 $716.3 $711.4 $651.4 $665.5 $622.6 $629.1 $620.9 $548.5 $494.0 $517.0 2020 2021 2022 2023 2024 Q1-2025 2020 2021 2022 2023 2024 Q1-2025 2020 2021 2022
Slide 16: Diversified Loan Portfolio
Diversified Loan Portfolio As of December 31, 2024 Portfolio Composition Asset Quality • NPAs / Assets 0.25% Multifamily CRE Owner 4% Occupied • Substandard Loans Accruing/ Total 17% Loans 0.64% Construction CRE Non- 6% Owner Occupied • >30 Days Past Due Loans Accruing / 28% Total Loans 0.07% RRE 1-
Slide 17: Low-Cost Deposit Portfolio
Low-Cost Deposit Portfolio As of 12/31/2024, unless otherwise noted Portfolio Composition Noninterest-Bearing Checking Noninterest Savings ($mm) $162 $162 $172 -Bearing 10% $141 Checking $106 23% Money Market 14% 2020 2021 2022 2023 2024 Relationship Pricing Drives Lower Cost 1.93% 1.91% CD 1.77% 19
Slide 18: Earnings and Profitability
Earnings and Profitability Adjusted Earnings Per Share1,2 Adjusted Return on Equity (ROE)1,2 Y $1.83 $1.80 E 12.13% A 10.69% R S 2023Y 2024Y 2023Y 2024Y Q U A $0.53 11.88% R $0.40 10.00% T E R S Q1-2024 Q1-2025 Q1-2024 Q1-2025 1 Unaudited non-GAAP financial measure. 2 Excludes the impact of net loss
Slide 19: Assets Under Management
Diversified Revenue Wealth Management Adjusted Noninterest Income1 Assets Under Management ($mm) Other BOLI, 6% $350.0 $1.9 $2.1 operating income, 10% Interchange $1.7 $300.0 $1.8 fees, 29% $1.5 Assets Under Management $250.0 $1.4 $1.5 $1.3 Secondary $1.2 market $200.0 $1.2 Revenue mortgage, 14% $15
Slide 20: Capital Management
Capital Management Capital Ratios Cash Dividends Per Share $0.48 13.61% 12.55% 12.55% $0.39 $0.36 10.06% $0.32 8.49% $0.28 TCE/TA Tier 1 Capital to CET1 to Risk Tier 1 Capital to Total Capital to (Consolidated) Average Assets Weighted Assets Risk Weighted Risk Weighted 2020 2021 2022 2023 2024 (Bank
Slide 21: Bringing Awareness to Our Story
Bringing Awareness to Our Story Janney Washington DC Virtual Bank Fall Investor Conference -March 2025 Conference – September 2024 21
Slide 22: Positioning PTBS for Future Success
Positioning PTBS for Future Success Launch Leverage SBA Government Focused Lending Contractor Lending Growth Strategies Expand Wealth Commercial and Mortgage Deposits / Divisions Treasury 22
Slide 23: Thank you!
Thank you!