Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Investor Presentation (August 2025)
33 slides from Potomac Bancshares's investor presentation, Aug 14, 2025
Slide 1: Investor Presentation August 2025
Investor Presentation August 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: Overview of Potomac Bancshares
Overview of Potomac Bancshares 3
Slide 4: Our Company
Our Company ($ in thousands) 2023Y 2024Y 6/30/25 YTD Balance Sheet Total Assets $830,714 $877,349 $920,339 Total Loans $651,360 $704,109 $736,424 Total Deposits $739,680 $754,359 794,863 Shareholders' Equity $66,874 $73,416 $77,490 TCE/TA 8.05% 8.37% 8.42% Profitability Metrics Adjusted ROAA (1) 0.9
Slide 5: Well Positioned in Our Markets
Well Positioned in Our Markets Jefferson and Berkeley County • Ideally located on Interstate 81 provides access to 75% of East Coast within 7 hours' drive. • Recent business investments from three companies total $559 million in investments with 1,020 jobs. Existing manufacturing companies continue
Slide 6: Market Opportunity in West Virginia
Market Opportunity in West Virginia Jefferson County, WV Berkeley County, WV Growth Opportunity Rank Insitiution Deposits ($mm) Market Share (%) Branches Rank Insitiution Deposits ($mm) Market Share (%) Branches 1 United Bankshares Inc. $527,752 27.5% 4 1 Potomac Bancshares Inc. $383,997 30.7% 3 2 T
Slide 7: Market Opportunity in Maryland and Virginia
Market Opportunity in Maryland and Virginia Washington County, MD Loudoun County, VA Growth Growth Opportunity Opportunity Rank Insitiution Deposits ($mm) Market Share (%) Branches Rank Insitiution Deposits ($mm) Market Share (%) Branches 1 Truist Financial Corp. $1,598,154 18.1% 12 1 Fulton Financi
Slide 8: Diversified Portfolios
Diversified Portfolios Loan Portfolio by Region Deposit Portfolio by Region (in thousands) (in thousands) $63,989 $28,711 9% 4% $236,846 30% $360,075 49% $312,360 42% $529,303 66% Maryland West Virginia Virginia Maryland West Virginia Virginia Unaudited. Amounts as of 6/30/2025. Strategic expansion
Slide 9: Adjusted Net Income (Non-GAAP)
Adjusted Net Income (Non-GAAP) (in thousands) $9,000 $8,000 $526 $7,000 $1,627 $6,000 $5,000 $4,000 $7,602 $7,448 $855 $7,075 $3,000 $5,949 $2,000 $4,329 $3,397 $3,219 $2,943 $1,000 $0 ($290) ($338) ($619) 2018 2019 2020 2021 2022 2023 2024 6/30/2025 YTD ($1,000) Adjusted net income PPP income, net
Slide 10: Thoughtful Diversification of Commercial Specialties
Thoughtful Diversification of Commercial Specialties Traditional C&I lending in our Commercial Real Estate led SBA Lending team lift-out in Government Contractor Core Markets led by seasoned, by seasoned, well-known May 2021 of 3 seasoned business line added in well-known Community banker with conta
Slide 11: Scalable Fee Income Based on Business Lines
Scalable Fee Income Based on Business Lines • Partnered with Clearstead Advisors for • Partnered with Lender Solutions for • Partnered with Sterling Financial Investment Management all back-office functions Management, a registered LPL • Outsourced backoffice to Fi-Tek • Better execution for greater
Slide 12: Positioning for Future Success
Positioning for Future Success Focused Growth Strategies Leverage Grow Government Expand Wealth and Commercial Deposits / SBA Expertise Contracting Mortgage Treasury Management Become a Known Leader for Expanding Brand Awareness of Wealth: Be Known as Trusted Expand Leadership of Small Business Bank
Slide 13: Financial Overview
Financial Overview sz POTOMAC 2S BANCSHARES OTCID:PTBS
Slide 14: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Loans ($mm) 11.3% CAGR(1) Deposits ($mm) 10.9% CAGR(1) Assets ($mm) 11.2% CAGR(1) $736.4 $920.3 $704.1 $794.9 $877.3 $651.4 $739.7 $754.4 $830.7 $622.6 $756.1 $665.5 $629.1 $711.4 $517.0 $620.9 $494.0 $548.5 2020 2021 2022 2023 2024 Q2 2025 2020 2021 2022 2023 2024 Q2
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio As of June 30, 2025 Loan Portfolio Composition Asset Quality • NPAs / Assets 0.31% Multifamily HELOC Other 3% • Substandard Loans Accruing / Total Loans 0.16% 4% 2% • >30 Days Past Due Loans Accruing / Total Loans 0.12% Construction 6% RRE 1-4 Family 32% C&I 8% Loan Yield
Slide 16: Proactive Credit Risk Management Practices
Proactive Credit Risk Management Practices Proactive Underwriting Culture CRE and ADC Concentration Ratios • Loan stress testing is conducted: Managing CRE Concentrations 350.00% • At a transaction level, we stress test increased vacancy, rising interest rates, and high 300.00% capitalization rates
Slide 17: Low-Cost Deposit Portfolio
Low-Cost Deposit Portfolio As of June 30, 2025 Portfolio Composition Noninterest-Bearing Checking (As of June 30, 2025)) ($mm) $172 $177 $162 $162 CD Noninterest $141 17% Bearing $106 Checking 22% 2020 2021 2022 2023 2024 6/30/2025 1.68% Money Market Cost of 18% Deposits1 Cost of Deposits 1.75% 1.68
Slide 18: Assets Under Management / Diversified Revenue
Diversified Revenue As of or for the six months ending 6/30/2025, unless otherwise noted Wealth Management Assets Under Management ($mm) Noninterest Income Bank owned life $400.0 $1.7 $1.9 $2.0 Assets Under Management insurance $1.4 $1.5 5% Interchange fees $300.0 $1.5 $1.2 Revenue 28% $1.0 Other op
Slide 19: Earnings and Profitability (Adjusted / Non-GAAP)
Earnings and Profitability (Adjusted / Non-GAAP) Adjusted Earning Per Share Adjusted Return on Equity (ROE) ($)1 (%)1 $1.71 $1.83 $1.80 11.95% 12.13% 11.52% $1.44 10.37% 10.69% $1.05 $0.71 5.47% 2020 2021 2022 2023 2024 2025 YTD 2020 2021 2022 2023 2024 2025 YTD Adjusted Return on Assets (ROA) Effic
Slide 20: Liquidity and Interest Rate Risk
Liquidity and Interest Rate Risk As of or for the six months ending 6/30/2025, unless otherwise noted Securities Portfolio Other Sources of Liquidity • $67.6 million of interest-bearing deposits in banks in Corporate 9% SBA other financial institutions Municipal 9% • $285.5 million available at FHLB
Slide 21: Strong Capital Position
Strong Capital Position Capital Management Strategy As of June 30, 2025 Objectives: • Maintain designation as a “well-capitalized institution.” • Ensure capital levels are commensurate with the Company’s risk profile, capital stress test projections, and strategic plan. Actual Pro Forma Including AO
Slide 22: Delivering Shareholder Value
Delivering Shareholder Value Tangible Book Value Per Share Cash Dividends Per Share 7.1% CAGR(2) 10.4% CAGR(2) $18.70 $17.71 $0.51 $16.14 $15.55 $15.43 $0.46 $13.26 $0.38 $0.35 $0.31 $0.28 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 6/30/25 2020 2021 2022 2023 2024 2025 (1) (1) Projected dividend f
Slide 23: Questions?
Questions? POTOMAC BANCSHARES OTCID:PTBS
Slide 24: Appendix
Appendix sz POTOMAC 2° BANCSHARES OTCID:PTBS
Slide 25: Commercial Real Estate: Non-Owner Occupied
Commercial Real Estate: Non-Owner Occupied ($000s) Exposure by Asset Class Asset Class Balances % of Total (in $100s) Pool Retail $62,543 31.6% Office $27,695 14.0% Medical Practice $11,194 5.7% Hotel $32,708 16.5% Industrial $34,223 17.3% Mixed Use $11,704 5.9% Self-Storage $15,309 7.7% Other $2,43
Slide 26: Commercial Real Estate: Office Buildings
Commercial Real Estate: Office Buildings (not including medical) • Office real estate is primarily “Main Street” and not major city centers; tenants are commonly local real estate agents, accountants, and attorneys • Total exposure $27.7 million across 20 assets/ facilities • Largest single facility
Slide 27: Commercial Real Estate: Owner Occupied
Commercial Real Estate: Owner Occupied Industry Balances % of Total Diverse Across Multiple Industries Construction $5,400 4.53% Manufacturing $7,482 6.28% Retail Trade $8,453 7.10% Insurance $6,938 5.83% Professional, $15,453 12.97% Scientific, and Technical Services Administrative $6,550 5.50% and
Slide 28: Diversified Loan Portfolio
Diversified Loan Portfolio C&Is and LOCs • In late 2022, we pivoted the loan portfolio for greater diversity by focusing on C&I Lending and Lines of Credit diversification • The bank pivoted business development focus to operating companies with deposit, equipment and working capital line of credit
Slide 29: Experienced & Proven Leadership Team
Experienced & Proven Leadership Team Alice P. Frazier joined Potomac Bancshares, Inc. in 2017 as President & Chief Executive Officer. She has over 33 years of banking experience. Prior to Potomac Bancshares Inc., she served as Executive Vice President and Chief Operating Officer of Cardinal Financia
Slide 30: Diversified Board of Directors
Diversified Board of Directors In addition to its top-notch management team, the Company is proud of its board of directors and believes that it serves a critical role in formulating strategy while exemplifying sound corporate governance. The board is very diverse in terms of backgrounds, perspectiv
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations For the Years Ended December 31, 6/30/2025 j 2020 2021 2022 2023 2024 YTD Adjusted Net Income: Net income (GAAP) $ 3,798 $ 7,576 $ 7,311 $ 7,264 $ 6,829 $ 4,262 Add: Net losses on sale of securities (17) (8) 367 428 783 - Add: Core system conversion expense - - - - - 85 Subt
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations . For the Years Ended December 31, 6/30/2025 2020 2021 2022 2023 2024 YTD Adjusted Performance Ratios: Average assets $ 584,308 $ 676,429 $ 738,485 $ 796,673 $ 858,988 $ 896,863 Return on average assets (GAAP) 0.65% 1.12% 0.99% 0.91% 0.80% 0.96% Adjusted return on average as
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