Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Investor Presentation (September 2026)
36 slides from Potomac Bancshares's investor presentation, Sep 24, 2026
Slide 1: Investor Presentation
Investor Presentation September 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation 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 ab
Slide 3: Overview of Potomac Bancshares
Overview of Potomac Bancshares 3
Slide 4: Our Company
Our Company ($ in thousands) 2024Y 2025Y 6/30/2026 YTD Balance Sheet Total Assets $877,349 $944,284 $981,398 Total Loans $704,109 $751,604 $771,712 Total Deposits $754,358 $813,029 $847,746 Shareholders' Equity $73,416 $82,443 $86,904 TCE/TA¹ 8.37% 8.73% 8.86% Profitability Metrics Net Income $6,829
Slide 5: 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 35 years of banking experience. Prior to Potomac Bancshares Inc., she served as Executive Vice President and Chief Operating Officer of Cardinal Financia
Slide 6: Well Positioned in Our Markets
Well Positioned in Our Markets Jefferson and Berkeley County, WV • Ideally located on Interstate 81 provides access to 75% of East Coast within 7 hours' drive. • Recent and announced projects include multi-billion-dollar private-sector investments, highlighted by a $4.0 billion data center campus ex
Slide 7: Deposit Opportunity in West Virginia
Deposit Opportunity in West Virginia Jefferson County, WV Berkeley County, WV Growth Opportunity Rank Institution Deposits ($000s) Market Share (%) Branches Rank Institution Deposits ($000s) Market Share (%) Branches 1 United Bankshares Inc. $652,667 30.1% 4 2 Truist Financial Corp. 389,213 17.9% 3
Slide 8: Deposit Opportunity in Maryland and Virginia
Deposit Opportunity in Maryland and Virginia Washington County, MD Loudoun County, VA Growth Growth Opportunity Opportunity Rank Institution Deposits ($000s) Market Share (%) Branches Rank Institution Deposits ($000s) Market Share (%) Branches 1 Truist Financial Corp. $1,678,674 17.8% 12 1 Fulton Fi
Slide 9: Strategic Objectives
Strategic Objectives Market Operational Geographic Profitability Share Excellence Expansion Be the “Employer of Optimize Choice” with processes to Deliver Increase Expand and consistently Our Culture of shareholder Market Share diversify into achieve “Collective value through in All Current new grow
Slide 10: Culture Creates Results
Culture Creates Results 6 of the Last 7 Years BCTCares Foundation Donated over $500,000 Top 200 Banks Under $2 Billion Bauer Financial 5 Star Rating 38 Consecutive Quarters 10
Slide 11: Balance Sheet
Balance Sheet POTOMAC Gr BANCSHARES OTCID: PTBS 11
Slide 12: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Loans ($mm) 9.31% CAGR(1) Deposits ($mm) 6.85% CAGR(1) Assets ($mm) 7.41% CAGR(1) $847.7 $813.0 $751.6 $771.7 $754.4 $739.7 $981.4 $704.1 $944.3 $651.4 $665.5 $877.3 $622.6 $629.1 $830.7 $756.1 $517.0 $711.4 2021 2022 2023 2024 2025 Q2 2026 2021 2022 2023 2024 2025 Q2
Slide 13: Geographic Diversification
Geographic Diversification Loan Portfolio by Region1 Deposit Portfolio by Region1 (in thousands) (in thousands) $51,932 7% $30,796 4% $265,288 31% $391,506 $772M $848M 51% $328,274 42% $551,662 65% Maryland (5.57% Loan Yield) West Virginia (5.79% Loan Yield) Maryland (1.18% Cost of Deposits) West Vi
Slide 14: Thoughtful Diversification of Commercial Specialties
Thoughtful Diversification of Commercial Specialties Traditional C&I lending in our Commercial Real Estate led SBA Lending added in May Government Contractor Core Markets led by seasoned, by seasoned, well-known 2021 led by a seasoned banker, business line added in well-known Community banker with c
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio As of June 30, 2026 Loan Portfolio Composition 2026 YTD Asset Quality • NPAs / Assets: 0.05% Multifamily HELOC 5% 2% • Substandard Loans Accruing / Total Loans: 0.05% • >30 Days Past Due Loans Accruing / Total Loans: 0.56% Construction 6% RRE 1-4 Family 35% C&I 8% Loan Yie
Slide 16: Diversified Loan Portfolio (continued)
Diversified Loan Portfolio (continued) C&I Lending1 • Commercial specialties in Government Contractor lending and SBA lending supports the Bank’s initiative to diversify the portfolio with C&I loans • The initiative targets operating companies with deposit, equipment and working capital needs • The
Slide 17: Commercial Real Estate: Non-Owner Occupied
Commercial Real Estate: Non-Owner Occupied ($000s) Non-Owner Occupied CRE Non-Owner Occupied CRE by Asset Class by Location Balances % of Total % of Total Asset Class (in $000s) Pool Loans Retail $77,653 35.5% 10.1% Office $31,630 14.5% 4.1% Industrial $31,054 14.2% 4.0% Hotel $29,969 13.7% 3.9% Sel
Slide 18: Commercial Real Estate: Owner Occupied
Commercial Real Estate: Owner Occupied Diverse Across Multiple Industries & Locations Balances % of Total Industry (in $000s) % of Pool Loans Health Care $24,835 20.3% 3.2% PA Other and Social Assist. DC 3% 5% 1% Prof., Scientific, and $14,888 12.2% 1.9% WV Technical Svcs 24% Churches $13,958 11.4%
Slide 19: Commercial Real Estate: Office Buildings
Commercial Real Estate: Office Buildings Office Loans by State • Office real estate is primarily “Main Street” and not major city centers; tenants are commonly local real estate agents, accountants, and attorneys MD WV • Total exposure $31.7 million across 22 assets/ 18% 15% facilities • $28.1 milli
Slide 20: Proactive Credit Risk Management Practices
Proactive Credit Risk Management Practices Proactive Underwriting Culture CRE and ADC Concentration Ratios • Loan stress testing is conducted: Policy Limit 400% • At a transaction level, we stress test increased 350% vacancy, rising interest rates, and high capitalization rates (i.e., lower values)
Slide 21: Low-Cost Deposit Portfolio
Low-Cost Deposit Portfolio As of June 30, 2026 Portfolio Composition Noninterest-Bearing Checking ($mm) CD $183 $197 Noninterest $162 $162 $172 17% Bearing $141 Checking 23% 2021 2022 2023 2024 2025 Q2 2026 1.55% Money Market Cost of 18% Deposits Cost of Deposits Interest 1.75% 1.70% 1.55% Checking
Slide 22: Securities and Liquidity
Securities and Liquidity As of June 30, 2026, unless otherwise noted Securities Portfolio Other Sources of Liquidity Muni • $75.0 million of interest-bearing deposits in banks in Corporate CMBS 4% other financial institutions 5% 16% • $315.1 million available at FHLB of Pittsburgh Treasury 10% • $39
Slide 23: Income Statement
Income Statement POTOMAC Gr BANCSHARES OTCID: PTBS 23
Slide 24: Earnings and Profitability
Earnings and Profitability Net Interest Margin Return on Equity (ROE) (%) (%) 3.71% 15.11%¹ 3.53% 13.22% 12.35% 3.38% 3.39% 3.27% 11.59% 11.46% 3.16% 9.80% 2021 2022 2023 2024 2025 YTD 2021 2022 2023 2024 2025 YTD Return on Assets (ROA) Efficiency Ratio² (%) (%) 1.30%¹ 69.07% 70.48% 1.12% 66.07% 65.
Slide 25: Income Statement Components
Income Statement Components Net Interest Income Noninterest Expense ($000s) ($000s) $31,836 $34,376 $24,091 $26,635 $28,364 $27,075 $19,967 $22,391 $24,273 $26,016 $18,121 $20,582 2021 2022 2023 2024 2025 LTM 2021 2022 2023 2024 2025 LTM Noninterest Income Net Income ($000s) ($000s) $9,166 $6,768 $7
Slide 26: Diversified Revenue and Assets Under Management
Diversified Revenue As of June 30, 2026 Wealth Management Assets Under Management ($mm) Noninterest Income Net gain on sale $500.0 $2.6 $3.0 Assets Under Management of SBA loans Interchange fees $2.5 $400.0 $1.9 $2.1 4% 22% $1.7 $2.0 Revenue Bank owned life $300.0 $1.4 $1.5 insurance $1.5 4% $200.0
Slide 27: Capital
Capital POTOMAC Gr BANCSHARES OTCID: PTBS 27
Slide 28: Strong Capital Position
Strong Capital Position Capital Management Strategy As of June 30, 2026 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 29: Illustrative Holding Company Pro Forma Capital Ratios
Illustrative Holding Company Pro Forma Capital Ratios ◼ PTBS does not report holding company capital ratios; the below calculation is for illustrative purposes only ◼ 100% of new subordinated debt will be included in Tier 2 capital, compared to 80% of existing debt Actual 6/30/2026 Pro Forma 6/30/20
Slide 30: Double Leverage and Interest Coverage
Double Leverage and Interest Coverage Assumptions Subordinated Debt Issuance Net Proceeds Amount¹ $14,550 Interest Rate 6.50% Pro Forma Pro Forma Twelve Months Ended December 31, Quarter Ended for Offering, for Offering, (Dollars in thousands) 2022 2023 2024 2025 6/30/2026 Pre-Redemption Post-Redemp
Slide 31: Appendix and Non-GAAP Reconciliation
Appendix and Non-GAAP Reconciliation 31
Slide 32: Historical Balance Sheet
Historical Balance Sheet Dollars in Thousands As of December 31, 2022 2023 2024 2025 06/30/2026 Assets Cash and Cash Equivalents 12,359 68,702 64,764 79,649 79,864 Available for Sale Securities 88,519 83,929 77,385 80,905 96,642 Held to Maturity Securities -- -- -- -- -- Other Securities 1,534 1,769
Slide 33: Historical Income Statement
Historical Income Statement Dollars in Thousands For the Year ended December 31, YTD 2022 2023 2024 2025 06/30/2026 Interest Income 27,064 35,583 41,692 47,347 25,169 Interest Expense 2,791 9,567 14,617 15,511 7,641 Net Interest Income $24,273 $26,016 $27,075 $31,836 $17,528 Provision for Credit Los
Slide 34: 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 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures This presentation contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). The non-GAAP measures include efficiency ratio and tangible common equity to tangible assets. Th
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Dollars in Thousands For the Years Ended December 31, 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 Efficiency Ratio Total noninterest expense $ 18,121 $ 19,967 $ 22,391 $ 24,161 $ 26,978 $ 7,146 $ 7,176 Subtract: Core system conversion expense - - - - (85) - - Subtract: Renaming
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