FOR IMMEDIATE RELEASE
WashingtonFirst Bankshares, Inc. Reports Net Income Growth of 58% Over 2015 Q3 Results; Continues Record Earnings for 2016
RESTON, VA - WashingtonFirst Bankshares, Inc. (NASDAQ: WFBI) (the "Company"), announced today consolidated net income of $4.9 million and $13.3 million (or $0.39 and $1.06 per diluted common share) for the three and nine months ended September 30, 2016, respectively. Net income during the third quarter of 2016 increased 57.7% over the $3.1 million in net income (or $0.31 per diluted common share) earned during the three months ended September 30, 2015, and increased 12.3% over the prior quarter ended June 30, 2016. Year to date earnings for the nine months ended September 30, 2016, increased 53.5% over the $8.6 million (or $0.87 per diluted common share) earned during the nine months ended September 30, 2015. Additionally, the Company paid its 12th consecutive quarterly dividend of $0.06 on October 3, 2016.
Shaza Andersen, the Company's President and CEO, said, “I am excited to report our ROA was 1.09% for the third quarter 2016, compared to 0.83% for the same period last year. ROA is a strategic focus for us in 2016 and we are executing on our plan consistently each quarter. Earnings per share is strong both quarter-to-date and year-to-date and is enhanced by the mortgage and wealth management operations acquired last year from 1st Portfolio. Both businesses are exceeding our initial expectations. Asset quality remains a key priority for us - we reduced our NPAs from 0.87% as of December 31, 2015, to 0.58% as of September 30, 2016. During the final quarter of 2016, and as always, we will remain focused on premier customer service and strong financial performance, core principles that will continue to produce long-term value for our shareholders.”
The net interest margin was 3.53% and 3.47% for the three and nine months ended September 30, 2016, respectively, as compared to 3.76% and 3.74% for the same periods in 2015. This decrease is primarily attributable to the addition of $25.0 million in subordinated debt added in the fourth quarter of 2015 and competitive pressure for incremental loans and deposits. Additionally, the cost of interest bearing liabilities for the nine months ended September 30, 2016, increased 15 basis points to 1.02% compared to the same period last year, and is primarily attributable to changes in the mix of deposits. On a linked quarter basis, the net interest margin increased 16 basis points during the three months ended September 30, 2016, to 3.53% due to loan growth and the deleveraging strategy implemented at the end of the second quarter of this year. The Company remains focused on its pricing discipline on both sides of the balance sheet and on all factors contributing to net income.
Interest and fees on loans increased $2.2 million to $17.7 million for the three months ended September 30, 2016, compared to the same quarter last year. Similarly, interest and fees on loans increased $7.7 million to $50.9 million for the nine months ended September 30, 2016, compared to the same period last year. Total interest and dividend income increased by 15.0% and 18.8%, respectively, during the three and nine months ended September 30, 2016, compared to the same periods last year.
Non-interest income grew during both the three and nine months ended September 30, 2016, by $5.7 million and $17.9 million, respectively, compared to the same periods ended September 30, 2015, as a result of the successful integration of the 1st Portfolio companies acquired in July 2015. The mortgage subsidiary acquired in the 1st Portfolio acquisition contributed $6.3 million and $14.4 million to non-interest income via gain on sale of loans, respectively, during the three and nine months ended September 30, 2016, compared to $2.0 million and $2.2 million generated by the Bank's legacy mortgage operation for the same periods ending September 30, 2015. Additional fee income of $1.2 million and $3.8 million was generated by the mortgage subsidiary for the three months and nine months ended September 30, 2016, respectively. Wealth management activities began as a result of the 1st Portfolio acquisition. During the three and nine months ended September 30, 2016, $0.5 million and $1.3 million, respectively, of non-interest income was derived from the wealth division compared to $0.3 million for both the three and nine months ended September 30, 2015.
The following information was filed by Washingtonfirst Bankshares, Inc. (WFBI) on Thursday, October 20, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.