Virginia Heritage Bank

Fairfax, VA · Cert 58174

FDIC · 6 branches

Q3 2014

$951.7MAssets

$805.9MLoans

$742.8MDeposits

$106.2MEquity

Loan mix

Deposit mix

NIM

Market Position · Washington-Arlington-Alexandria, DC-VA-MD-WV · 2014 SOD (annual) · 0.4% share · #24 of 87 inst. · $0.8B of $197.1B

1.6% Fairfax

1.9% Prince William

0.7% Loudoun

0.0% Arlington

Earnings: ROA of 0.98%, down 9 bps year over year; NIM at 3.42%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.04%.
Funding: loans stand at 108.49% of deposits as of Q3 2014.

Return on Assets (YTD, annualized)

0.98%-9 bps YoY

Net Interest Margin (YTD, annualized)

3.42%+5 bps YoY

Efficiency Ratio (YTD, annualized)

61.05%-264 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q3 2013	Q4 2013	Q1 2014	Q2 2014	Q3 2014	YoY Δ	Trend
Earnings
Return on Assets	1.07%	1.08%	0.97%	0.93%	0.98%	-9 bps
Return on Equity	10.73%	10.69%	8.98%	8.58%	8.94%	-179 bps
Net Interest Margin	3.37%	3.35%	3.46%	3.44%	3.42%	+5 bps
Efficiency Ratio	63.69%	62.51%	57.59%	61.07%	61.05%	-264 bps
Non-Interest Burden	1.66%	1.65%	1.69%	1.79%	1.78%	+11 bps
Growth
Asset Growth (YoY)	14.18%	14.49%	13.99%	12.73%	13.94%	-24 bps
Loan Growth (YoY)	12.85%	12.73%	16.50%	18.09%	21.94%	+908 bps
Deposit Growth (YoY)	14.26%	7.77%	5.89%	6.39%	4.51%	-974 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.00%	0.03%	0.10%	0.05%	0.04%	+4 bps
Allowance / Loans	1.47%	1.37%	1.36%	1.34%	1.28%	-19 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	15.84%	14.86%	14.76%	14.62%	14.44%	-141 bps
Equity / Assets	11.34%	10.75%	10.92%	10.81%	11.16%	-18 bps
Liquidity & Funding
Loans / Deposits	92.99%	100.73%	100.37%	100.06%	108.49%	+1,550 bps
Liquid Assets / Assets	2.51%	2.52%	1.59%	3.91%	2.39%	-13 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a