Potomac Bancshares, Inc. · OTC:PTBS
Potomac Bancshares — Shareholder Meeting (April 2022)
24 slides from Potomac Bancshares's shareholder meeting presentation, Apr 26, 2022
Slide 1: Shareholder Meeting April 26, 2022
Shareholder Meeting April 26, 2022
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: April 4, 1871 – Our Story is Your Story
April 4, 1871 – Our Story is Your Story 3
Slide 4: Potomac Bancshares
POTOMAC ie)(77 BANCSHARES OTC: PTBS
Slide 5: Neighbors Helping Neighbors
Neighbors Helping Neighbors ▪ Support 8 Non-Profits focused on assisting those who are Food Insecure ▪ 2021 Pack the ‘Pack program raising $43,000 to fill 8,600 backpacks ▪ Established ▪ Since Fall 2019, raised and contributed over $101,000 towards caring for the hungry 5
Slide 6: Commitment to our Communities
Commitment to our Communities ▪ Innovative One of Kind Program ▪ Co-founded with 3 local community banks to serve 11 counties ▪ Response to 2019 Federal Reserve Minority Owned Firm Study ▪ As of March 31, 2022, funded $544,000 of the collective commitment of $1,000,000 RATIONS SPACEPORT 6
Slide 7: Strategic Priorities
Strategic Priorities Provide a differentiated culture in which employees thrive Provide a Differentiated Ensure a consistent Amazing Customer Experience (ACE) at every Customer Experience interaction with the ACE Playbook Must be equally present in the physical and digital environment Grow and
Slide 8: The Experience Culture Drives Success
The Experience Culture Drives Success 8
Slide 9: Leading Small Business Initiative
Leading Small Business Initiative ▪ Highly experienced Small Business Banker Team ▪ Opened LPO in Fredericksburg located in UMW Center for Economic Development ▪ Achieved Preferred Lender status in October 2021 – First WV Chartered Bank ▪ Relationships with local SBDC ▪ Flexibility to generate fee i
Slide 10: Strengthened BCT Investments
Strengthened BCT Investments ▪ Aligned with Sterling Financial Management, Inc. ▪ Expanded the team with experienced advisors ▪ Collaborates with BCT Wealth to provide amazing experience ▪ Greater efficiency and responsiveness Securities and advisory services are offered through LPL Financial (LPL),
Slide 11: DIGITAL – Investments for the future
DIGITAL – Investments for the future ▪ Adds value to the client – Simplifies the financial life – Ease of use – Saves client money ▪ Streamlines process for cost savings ▪ Enterprise-wide dashboard ▪ Outsourced AI 11
Slide 12: Future of Fintech Investing
Future of Fintech Investing ▪ Four year involvement in the ICBA ThinkTech program – Selection Committee exposure – In-depth demos/coaching ▪ Anchor investment in BankTech Venture Fund – Fintech ecosystem 12
Slide 13: 2021 Results
POTOMAC 77 BANCSHARES. 2021 Results OTC: PTBS 13
Slide 14: Balance Sheet Growth ('000's)
Balance Sheet Growth (‘000’s) Compound Annual Growth Rate of Assets = 13.71% $800,000 Loans Deposits Assets $711,388 $700,000 $629,086 $620,912 $600,000 $548,542 $515,786 $516,978 $484,550 $493,965 $500,000 $449,880 $425,494 $424,127 $412,460 $372,159 $363,957 $400,000 $346,767 $300,000 $200,000 $10
Slide 15: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio as of 12/31/2021 Concentrations of Credit Farm, 1% ▪ Well below regulatory guidelines: – Construction & Land = 38.2% – Commercial RE = 244.5% C&I, 26% Residential, 32% ▪ Capped Hotel Lending in 3Q2019 – Current O/S balances = $28.2 million Non-Owner Occ CRE,
Slide 16: Prudent Credit Culture Drives Asset Quality
Prudent Credit Culture Drives Asset Quality Non-Current Assets to Total Assets ▪ Strong credit culture and 0.60% underwriting guidelines BCT 0.48% ▪ Strong monitoring practices 0.50% 0.56% 0.53% Local Peer of concentrations, trends 0.52% National Peer ▪ Semi-annual credit score 0.40% monitoring of c
Slide 17: Conservative Investment Portfolio & AOCI
Conservative Investment Portfolio & AOCI March 31, 2022 Agencies, Other, 1% 4% ▪ Conservative, high-quality portfolio ▪ Average duration = 3.87 years US MBS, 48% ▪ Taxable equivalent yield = 1.51% Treasuries, 35% ▪ Unrealized loss at 3/31/22 = $4,958,500 Municipal, Corporate, 4% 9% 17
Slide 18: Non-Interest Bearing Deposit Growth ('000s)
Non-Interest Bearing Deposit Growth (‘000s) $700,000 $629,086 ▪ Strategic initiative to grow $600,000 $548,542 non-interest bearing deposits as % of total deposits $500,000 $449,880 – December 31, 2021 = $400,000 22.5% ▪ Specifically designed $300,000 products for targeted businesses $200,000 $141,2
Slide 19: Strong Capital Position as of December 31, 2021
Strong Capital Position as of December 31, 2021 18.00% 16.00% 15.54% 14.44% 14.44% 14.00% 12.00% 10.18% 10.50% 10.00% 10.00% 8.50% 8.54% 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 Assets CET 1 to Risk Weighted Assets Total Capital to
Slide 20: Well Diversified Non-Interest Income
Well Diversified Non-Interest Income ▪ Non-Interest Income to Average Assets 2021Y Deposit – PTBS/BCT = 1% Other, 14% Services, 13% – Local Peer Group = 0.75% – National Peer Group = 0.70% ▪ Increased 19% over 2020 to $6.8 Secondary million Market, 24% Interchange, 28% ▪ Wealth AUM increased 20% to
Slide 21: Record Year of Earnings
Record Year of Earnings Strategic expansion initiatives began July 2018 $8,000 $7,570 $7,000 $6,000 $5,000 $4,000 $3,785 $3,392 $3,213 $3,141 $3,000 $2,000 $1,000 $0 2017 2018 2019 2020 2021 Net Income 21 Net Income (000’s)
Slide 22: Rewarding Shareholders with Dividends and Total Return
Rewarding Shareholders with Dividends and Total Return Annual Per Share $2.00 Total Return $1.80 $1.83 since $1.60 July 1, 2017 $1.40 89.51% $1.20 $1.14 $1.00 $0.94 $0.92 12.5% increase to dividend to $.09 $0.80 $0.78 per share for shareholders of record $0.60 May 3, 2022, payable May 10, 2022 $0.40
Slide 23: Thank You For Your Continued Support
Thank You For Your Continued Support 23
Slide 24: Slide 24
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