Initiation of Coverage. FRCV First Virginia Community Bank. March 31, FRCV: $16.30 Outperform // Price Target: $20.00

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1 Source (all data): FIG Partners Research, SNL Financial LC Christopher Marinac, CFA Caitlin Van Zelfden Initiation of Coverage March 31, 2015 Please see important disclosures regarding FIG Partners equity rating system, distribution of ratings, and other report disclosures on the last page of this report. Ideas & Execution on Financial Institutions (404) FRCV First Virginia Community Bank We recommend FRCV shares at an Outperform rating with a $20.00 Price Target or over 22% upside for new investors. This community Bank in Northern Virginia is well-positioned for sustained growth in Assets, Loans, and Deposits while accumulating Tangible Book Value and Earnings per share over the next several quarters. Our EPS projections near $1.00 in 2015 and $1.20 in 2016 are conservative with an underlying ROA-Return on Assets of just 0.80%. In our view, management seeks far better performance over time and we see opportunities to reach higher profits exist sooner than this report indicates. FRCV enjoys a strong Core Deposit franchise with over 60% of Total Funding in non-time Deposits with a real focus on commercial cash management, somewhat unique among peer institutions in its operating footprint. At a recent visit with management, our impression was that new business pipelines are strong for both Deposits and Loans with a superb opportunity for positive operating leverage as Revenues exceed the pace of new Expenses. Hence, strong quarterly EPS reported in 2014 (especially 4Q-2014) can be repeated and generate ongoing gains in Tangible Book Value per share. In the next 8 quarters, we forecast a $1.15 or 9% increase in tangible book which could prove to be conservative given management s outlook for new business and limited new expenses. Further, tangible capital is solid at an 11% TCE ratio which we expect is levered towards a 9.3% TCE level by late No new equity issuance is necessary to reach our financial projections. As investors discover and begin to appreciate the FRCV story, we feel the stock s valuation can expand similar to other widely known community Bank stocks in the greater Washington DC MSA that trade at far greater premiums to tangible book and Core Deposits. Hence, the visibility for upside to new investors is quite strong in our opinion. We favor the company s Asset size above $600 Million in 1Q-2015 which can expand by at least $100 Million each year, although we feel the $1 Billion size threshold may be sooner than our report indicates. FRCV s new Deposit capabilities create faster Asset growth capacity and as interest rates possibly rise in the future, the underlying value of this franchise could increase and reward patient shareholders. Hence, we feel it is critical to take positions in FRCV shares in advance while is valuation is moderate and tangible book value gains are not fully understood by the equity marketplace. The remainder of this report highlights the key fundamental indicators on the company and several nearby peer institutions along with our Risk explanations on Page 6. FRCV: $16.30 Outperform // Price Target: $20.00 Summary Statistics Exchange OTCQB Market Cap ($M) $85 Avg. Share Volume Annual Dividend 52 $0.00 Annual Yield na Tangible Book/Share $12.84 Price/Tangible Book 127% Price/2015 EPS 16.7x Price/2016 EPS 13.5x Total Assets ($M) TCE/TA $ % ROTCE (2016E) 8.8% ROA (2016E) 0.83% EPS Estimates Q Q Q Q FY Industry Type Savings/Thrift/Mutual Headquarters Fairfax, VA Offices 5 Date Established CEO 2007 David W. Pijor CFO Patricia Ann Ferrick Atlanta Chicago Jacksonville Los Angeles New York Raleigh San Francisco Member of FINRA/SIPC

2 The FRCV Operating Footprint Background FRCV is a $588 Million Asset institution serving three(3) key counties in Northern Virginia (Fairfax, Prince William, & Arlington) with five(5) branches at $101 Million average Deposits per location. Started in late 2007 with $23 Million in initial capital, the company weathered the recession with tangible book value expanding nearly 60% since year-end Continued economic growth from a deep local market of small and mid-sized businesses has permitted Loan and Deposit customers to flourish, which could lead to increasing profits and tangible book gains. We expect FRCV to surpass the $800 Million Asset threshold during 2016 and generate operating leverage on expenses with an ROA-Return on Assets at least 0.80%. The company s shares are an attractive alternative to its larger peers in Northern Virginia. Among our fundamental observations on the company are the following: Source: FIG Partners Research, SNL Financial s Interactive website Loan growth has been solid and consistent during the past 5 quarters with a focus on CRE, Residential Mortgage, and C&I (listed in order of Tier 1 concentration). Construction Loans are less than 50% of Tier 1 Capital and Multifamily carries a similar weighting. Tangible book value has expanded nicely after the Recession and the company has had success with private capital raises at slight premiums. The company s Loans-to-Deposits ratio has consistently stayed above 90% as Core funding (non-cds) has kept pace with new Loans. In fact, Core Deposits are 61% of the Total (up from 55% a year ago) with a Cash Management emphasis. Profitability should improve via positive operating leverage on expense as the ROA-Return on Assets exceeds 0.80% to trigger a larger tangible book premium. 2

3 Key Disclosures From FRCV s FDIC Call Report THE BASICS Company Name First Virginia Comm. Bank PROFITS ROA (as reported) 0.84% Status Current Adj. Core ROA (LLP = NCOs) 0.78% Charter Type Commercial Bank MSA/CBSA Name Washington, DC-VA-MD LOANS ADC / Construction 7% City Fairfax Multifamily 6% State VA O wner-o cc. CRE 17% Parent Name Other CRE 30% Parent Ticker FRCV C&I 15% TO TAL ASSETS ($000) $604,756 HELO Cs 6% Tier 1 Leverage Ratio 11.0% 1-4 Family 1st Lien 14% BALANCE Cash 3% SHEET Total Securities 10% DEPOSITS Non-Int. Bearing 5% ( % of Assets ) Loans 84% NO W 3% Deposits (% of Total Liab.) 94% Other Savings 33% All Debt (% of Total Liab.) 6% MMDA 19% Loan-to-Deposit Ratio 101% CDs Up to $250k 29% CDs Over $250k 10% HTM vs. AFS % HTM Securities (of Assets) 0% Broker Deposits 15% % AFS Securities (of Assets) 10% SECURITIES US Treasuries 0% COST / YIELD Cost of Int-Bear. Dep (%) 0.72 ( % of AFS ) Govt. Agencies 0% Cost of Funds (%) 0.69 Govt.-Sponsored Agencies 7% Municipals (State & Local) 2% Yield on Total Secs. (%) 1.85 Pass-Through RMBS 40% Yield on Loans (%) 4.77 Other RMBS 49% Net Interest Margin (%) 3.74 Total CMBS 0% Total Asset-Backed Sec. (ABS) 1% CREDIT TOTAL PROBLEM RATIO (excl PD) 0.6% Structured Financial Products 0% Problem Loans % of Tier 1 + Reserves 5% Tot Other Debt Secs 0% Day Past Due % (3/31) 0.12% Mutual Funds, et al 1% Day Past Due % (12/31) 0.62% Net Charge-Offs % (3/31) 0.01% REPRICING % Repricing Assets-to-Total Assets 25% Net Charge-Offs % (12/31) (0.01%) ( 1 Year ) % ADJUSTED-Repricing Liabilities % of Assets 35% Reserves % of Total Loans 1.09% Securities Repricing as % of Total Securities 0% Reserves-to-3YR Historical Loss ok Loans Repricing as % of Total Loans 26% CDs Repricing as % of Total Deposits 21% EXPENSES Total Expenses-to-Avg. Assets 2.4% Debt Repricing as % of Total Debt 92% ( annualized ) Salary Exp-to-Avg. Assets 1.3% Occupancy Exp-to-Avg. Assets 0.3% MATURITY % Total Loans Mature or Reprice in 3 to 5 YRS 28% Other Exp-to-Avg. Assets 0.8% % Total Loans Mature or Reprice in >5 YRS 33% Efficiency Ratio 60.6% Non-Resid. Loans Maturing >5YRS 32% STAFF # FTEs (Staff) 69 MORTGAGE Retail Originations ($000) $0 Assets Per FTE (in $000s) $8,765 ( 4Q-2014 ) 1-4 Fam Mortgage Loans SOLD ($000) $0 Salaries Per FTE $109,971 Mortgage Income % of Total Revenue na Pre-Pre Earnings Per FTE $153,507 Note: Adj. Core ROA removes all gains, uses a 4-quarter average on Loan Sale income. Source: FIG Partners Research, SNL Financial LC, FDIC Call Report Data

4 Loan Portfolio Breakdown Deposit Portfolio Breakdown Multifamily 5.6% Owner Occupied CRE 16.6% Construction 6.5% 1-4 Family Mortgage 15.4% Home Equity 6.1% Total C&I Loans 15.0% Non-Owner Occupied CRE 30.3% Total Consumer 2.3% MMDA & Savings 20.6% NOW & Other Trans. 19.2% Demand 20.8% Total Time 39.4% Source: FIG Partners Research, Company regulatory filings as of FRCV has 40% focus on Residential Mortgages, showing its history as a Thrift. At the same time, CDs are a larger component of the Funding Base than we would prefer but we think this should evolve into a better mix over time. Reducing CD dependency should become a healthy factor towards a stronger Core Deposit Premium which we feel is achievable over time. 4

5 Core Efficiency Ratio Core Expenses-to-Avg. Assets Initiation of Coverage 3/31/15 Earnings Forecast Over The Next 8 Quarters Our EPS Model Through 2016 Within our earnings model on FRCV during the next eight(8) quarters in 2015 and 2016, we forecast steady and consistent growth in Earning Assets and Loans with positive operating leverage on Expenses that combine for rising EPS. Our table on Page 7 includes each of the key components to expanding earnings and Tangible Book Value per share and below we offer these additional explanations: The Loans-to-Deposits ratio remains at 100%, we think sustained Deposit growth should match Earning Assets as raising Core Deposits is a key competency of the FRCV management team. Moreover, the relationship between Loans and Total Earning Assets should stay near the current level of 86% and rise modestly to 87% in NIM-Net Interest Margin should stay near 3.60% in the near-term and possibly rise to 3.70% later in If we are not conservative enough on NIM, we feel over Loan growth should offset spread compression and still permit healthy expansion in Tangible Book Value per share. Expense levels rise in aggregate dollars by 15% in 2015 and then 14% in 2016, but ratio Efficiency Ratio should moderate to the low 60s and fall below 60% in Positive operating leverage (i.e., revenues rise faster then overhead levels) should become a hallmark of the FRCV story. ROA-Return on Assets is near 0.80% in both 2015 and 2016, but management has stronger goals than our forecasts in this report. It would not surprise us to see FRCV reach 90 basis points sooner than we project and to approach a 1.0% level for at least 1-2 quarters during Hence, we feel our earnings outlook is conservative. Provision expenses rise due to continued Loan growth with underlying charge-off levels near 10 basis points of Average Loans. Reserves-to-Loans ratio rises in 2015 and again in Incremental reserve building at 1% of new Loan balances is a key item with regulatory examiners, in our opinion. Positive Trends on Overhead have been exhibited in recent quarters. We feel this has further room to decline in both 2015 and again in 2015 given positive operating leverage that we see inside the FRCV income statement. 90% 85% 80% 75% 70% 65% 60% FRCV's Historical Expense Trends 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% Efficiency Ratio [left] Expense-to-Assets [right] Source: FIG Partners Research, SNL Financial LC 5

6 Loans-to-Deposits have improved during the past several quarters while Loans as a percentage of Earning Assets has been consistent. We think FRCV is in a position to build quarterly EPS and Tangible Book Value per share and attract an even stronger valuation on the stock. 100% 95% 90% 85% FRCV's Balance Sheet Relationships Since 2Q % 75% 70% Loans-to-Deposits Loans % of Earning Assets RISKS Source: FIG Partners Research, SNL Financial LC Our earnings projections carry uncertainty along with other general risks that must be considered by investors. We highlighted these key Risks below: 1. FRCV depends on new Loan growth to expand earnings and leverage its capital base and cost structure. If Loan growth does not occur or if it slows significantly, earnings could be negatively affected. 2. Community Bank stocks can temporarily be correlated with broader financial markets such that external weakness may hinder the stock s valuation. 3. Changes in management, which are unforeseen, could place pressure on the stock s valuation due to uncertainty. 4. Weakening of local fundamentals in the Washington D.C MSA market areas could reduce total revenues and net income. Banks tend to be a mirror of the communities they serve. Thus, FRCV is subject to cyclical economic changes within its income statement and balance sheet. 6

7 First Virginia Community Bank Updated on 3/31/15 Earnings Model Calendar Year 2014 Calendar Qtrs 2015 Calendar Qtrs 2016 Calendar Qtrs 2014A 2015E 2016E 1Q14A 2Q14A 3Q14A 4Q14A 1Q15E 2Q15E 3Q15E 4Q15E 1Q16E 2Q16E 3Q16E 4Q16E Income Data: ($ in Millions) Net Interest Income $19.2 $23.1 $27.5 $4.3 $4.6 $5.0 $5.3 $5.3 $5.6 $6.0 $6.2 $6.3 $6.7 $7.1 $7.4 Loan Loss Provision $0.9 $1.6 $2.0 $0.0 $0.1 $0.4 $0.4 $0.4 $0.4 $0.4 $0.4 $0.5 $0.5 $0.5 $0.5 Non-Interest Income $1.0 $1.3 $1.4 $0.2 $0.1 $0.4 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.4 $0.4 Gain/Loss on Loan Sales $0.2 $0.4 $0.2 $0.0 $0.2 ($0.2) $0.2 $0.1 $0.1 $0.1 $0.1 $0.0 $0.1 $0.1 $0.0 Gain/Loss on Securities $0.1 $0.0 $0.0 $0.1 $0.0 $0.0 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 One-Time Items $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Non-Interest Expense $13.3 $15.3 $17.3 $3.3 $3.2 $3.2 $3.5 $3.7 $3.8 $3.9 $4.0 $4.1 $4.3 $4.4 $4.5 Pre-Tax Income $6.3 $7.9 $9.7 $1.2 $1.5 $1.7 $1.9 $1.7 $1.9 $2.1 $2.2 $2.0 $2.3 $2.7 $2.7 Taxes (w/ FTE adj.) $2.2 $2.8 $3.3 $0.4 $0.5 $0.6 $0.7 $0.6 $0.7 $0.7 $0.8 $0.7 $0.8 $0.9 $0.9 Extraordinary Items $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Net Income $4.1 $5.2 $6.4 $0.8 $1.0 $1.1 $1.2 $1.1 $1.2 $1.4 $1.5 $1.3 $1.5 $1.8 $1.8 Preferred Dividend $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Net Income Avail. To Common $4.1 $5.2 $6.4 $0.8 $1.0 $1.1 $1.2 $1.1 $1.2 $1.4 $1.5 $1.3 $1.5 $1.8 $1.8 Avg. Shares O/S Earnings Per Share (EPS) $0.79 $0.98 $1.20 $0.16 $0.19 $0.21 $0.24 $0.21 $0.24 $0.26 $0.27 $0.25 $0.29 $0.33 $0.34 Per Share Data: Reported Book Value $12.87 $13.35 $14.02 $12.01 $12.32 $12.51 $12.87 $12.96 $13.07 $13.21 $13.35 $13.47 $13.63 $13.82 $14.02 Tangible Book Value $12.84 $13.33 $13.99 $12.01 $12.32 $12.48 $12.84 $12.93 $13.04 $13.18 $13.33 $13.44 $13.60 $13.79 $13.99 Dividends $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Pre-Tax, Pre-Provision EPS $1.38 $1.80 $2.21 $0.24 $0.31 $0.39 $0.44 $0.39 $0.43 $0.47 $0.50 $0.47 $0.54 $0.59 $0.61 CORE GAAP EPS $0.78 $0.98 $1.20 $0.15 $0.19 $0.21 $0.24 $0.21 $0.24 $0.26 $0.27 $0.25 $0.29 $0.33 $0.34 KEY Ratios: Net Interest Margin 3.61% 3.65% 3.71% 3.48% 3.63% 3.71% 3.63% 3.63% 3.65% 3.65% 3.66% 3.67% 3.70% 3.73% 3.75% Return on Avg Assets 0.76% 0.78% 0.83% 0.63% 0.74% 0.80% 0.84% 0.70% 0.77% 0.82% 0.83% 0.72% 0.81% 0.89% 0.89% Return on Avg Equity 6.45% 7.47% 8.54% 5.23% 6.20% 6.79% 7.50% 6.44% 7.27% 7.90% 8.20% 7.18% 8.25% 9.26% 9.38% Pre-Tax Pre-Provision ROA 1.32% 1.45% 1.53% 0.99% 1.23% 1.47% 1.54% 1.34% 1.43% 1.49% 1.51% 1.38% 1.51% 1.61% 1.59% Efficiency Ratio 65.2% 61.5% 59.6% 73.5% 66.6% 61.7% 60.7% 63.9% 62.0% 60.5% 60.1% 62.2% 59.9% 58.2% 58.3% Overhead Ratio 2.44% 2.32% 2.25% 2.63% 2.43% 2.34% 2.38% 2.41% 2.34% 2.28% 2.26% 2.32% 2.27% 2.22% 2.21% TCE/TA 11.0% 10.0% 9.3% 11.8% 12.0% 11.3% 11.0% 10.7% 10.4% 10.1% 10.0% 9.8% 9.6% 9.5% 9.3% Period-End Balances: ($ in Millions) Earning Assets $587 $701 $813 $509.4 $517.8 $549.6 $587.5 $615.2 $644.4 $675.1 $700.7 $724.0 $755.0 $785.1 $813.4 Total Assets $605 $721 $837 $527.9 $534.6 $571.7 $604.8 $633.3 $663.4 $694.9 $721.3 $745.3 $777.2 $808.2 $837.4 Net Loans $504 $604 $707 $415.2 $432.9 $469.8 $504.4 $527.1 $553.4 $581.1 $604.3 $625.5 $653.6 $681.1 $707.0 Total Deposits $504 $601 $698 $459.5 $466.6 $487.0 $504.2 $528.0 $553.1 $579.4 $601.4 $621.4 $648.0 $673.8 $698.2 Intangibles $0 $0 $0 $0.0 $0.0 $0.2 $0.2 $0.2 $0.2 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 Total Common Equity $67 $72 $78 $62.2 $63.9 $64.9 $66.8 $67.9 $69.1 $70.5 $72.0 $73.3 $74.8 $76.6 $78.4 Source: FIG Partners Research, SNL Financial LC

8 How We Judge Future Valuation & Upside For New & Existing Shareholders In FRCV Plus Our Peer Analysis FIG Research Rating: "Outperform" Price Target: $ Multiple Price Core EPS $ x $18.20 Dividends $ x $0.00 Excess TCE $ x $1.80 Combined $20.00 Tangible Book 12/15 $ x $20.00 Implied Gain/Loss versus Current Price: 22.7% 2016 Outlook Core EPS $ x $19.50 Cash Dividends $ x $0.00 Excess TCE $ x $1.39 $20.89 Discount Rate 10% 0.96 Tangible Book 12/16 $ x $20.00 M&A Impact: 50% of Excess TCE, 11% ROE, 12.5x P/E 2015: 50% of TCE $ x $ : 50% of TCE $ x $1.39 Deposit Premium Forecast: Dec-14 Dec-15 Dec-16 Tangible Equity Total Deposits CORE Deposits Market Value Premium - Total 3.6% 6.0% 5.5% Premium - CORE 5.9% 9.9% 9.1% Peer Analysis Company Name Market Cap. ($M) Total Assets ($000) CDs % of Total TCE Ratio Total Deposit Premium Core Deposit Premium We feel FRCV shares can graduate to a higher level over the next few quarters as the stock becomes more widely-followed and investors both learn and appreciate the company s solid Core Deposit base and outlook for Tangible Book Value growth from retained earnings. Trailing 12-Month P/E MRQ MRQ MRQ Today Today 3/31/2015 3/31/2015 FRCV First VA Comm. Bk $85 $604, % 5.9% x ANCX Access Natl Corp $195 $1,052, % 20.1% x CFNL Cardinal Financial $645 $3,399, % 18.8% x EGBN Eagle Bancorp $1,285 $5,247, % 23.4% x ESXB Comm. Bankers Trust $96 $1,155, (0.7%) (1.7%) x EVBS Eastern VA Bnkshs $80 $1,181, (0.2%) (0.3%) x FCVA First Capital Bncp $56 $598, % 2.5% x FDVA Freedom Bank of VA $32 $342, % 2.1% x JMSB John Marshall Bank $146 $786, % 14.2% x MBRG Middleburg Financial $131 $1,222, % 1.7% x MNSB MainStreet Bank $40 $344, (0.4%) (1.1%) x OLBK Old Line Bankshares $171 $1,227, % 7.2% x SONA Southern National $148 $916, % 16.5% x TOWN TowneBank $829 $4,982, % 15.0% x WFBI WashingtonFirst $162 $1,333, % 6.7% x Source: FIG Partners Research, SNL Financial LC. Price-to- Tangible Book Value Source: FIG Partners Research & Forward Estimates 8

9 Re-Pricing Analysis For FRCV & Peer Institutions In The Washington D.C. MSA FDIC Charter Parent Ticker 1YR: % Repricing Assets-to- Total Assets 1YR: % ADJUSTED- Repricing Liabilities % of Assets First Virginia Comm. Bank FRCV 24.9% 35.2% Access National Bank ANCX 33.2% 43.8% Cardinal Bank CFNL 27.1% 41.1% WashingtonFirst Bank WFBI 36.0% 28.9% EagleBank EGBN 28.3% 35.7% John Marshall Bank JMSB 28.6% 42.7% Middleburg Bank MBRG 22.2% 27.3% Old Line Bank OLBK 15.5% 33.5% Sonabank SONA 31.1% 36.4% Talbot Bank-Easton, MD SHBI 35.0% 27.3% United Bank UBSI 29.5% 36.7% By our analysis, FRCV is liability sensitive in the near term given our assumptions that half or more of MMDA (money market) funds reprice if/when interest rates rise. The timing of disclosed Loan and Security repricing also shows a lag, although actual experience may differ. Source: FIG Partners Research, SNL Financial LC, FDIC Call Report filings FDIC Charter Parent Ticker % Loans Mature or Reprice in <1 YR % Loans Mature or Reprice in 1 to 3 YRS % Loans Mature or Reprice in 3 to 5 YRS % Loans Mature or Reprice in >5 YRS Non-Resid. Loans Maturing >5YRS First Virginia Comm. Bank FRCV 26% 13% 28% 33% 32% Access National Bank ANCX 35% 20% 20% 25% 24% Cardinal Bank CFNL 30% 16% 16% 37% 44% WashingtonFirst Bank WFBI 40% 18% 29% 13% 12% EagleBank EGBN 29% 28% 23% 21% 21% John Marshall Bank JMSB 30% 27% 28% 15% 15% Middleburg Bank MBRG 21% 15% 20% 43% 38% Old Line Bank OLBK 19% 14% 15% 52% 50% Sonabank SONA 34% 11% 20% 34% 29% Talbot Bank-Easton, MD SHBI 38% 22% 26% 9% 11% United Bank UBSI 29% 19% 18% 34% 32% The company has a reasonable amount of longer-term commercial lending. But, this is not extreme as this table indicates. Source: FIG Partners Research, SNL Financial LC, FDIC Call Report filings

10 More Background On FRCV vs. Peer Institutions (Washington D.C. MSA) Parent Ticker Total Assets ($000) Tier 1 Leverage Ratio Cash Balance Sheet Composition (% Total Assets) Total Securities Loans Deposits All Debt Loan-to- Deposit Ratio Profitability RO A (as reported) Adj. Core RO A (LLP = NCO s) First Virginia Comm. Bank FRCV 604, % 3.0% 10.0% 84.3% 93.7% 6.0% 101% 0.84% 0.78% Access National Bank ANCX 1,052, % 5.3% 13.2% 78.1% 79.7% 19.3% 101% 1.45% 1.18% Cardinal Bank CFNL 3,362, % 1.1% 10.2% 86.1% 85.6% 13.8% 101% 1.42% 1.29% WashingtonFirst Bank WFBI 1,333, % 4.7% 12.5% 80.0% 91.2% 7.9% 96% 0.90% 0.91% EagleBank EGBN 5,230, % 4.7% 7.3% 83.2% 94.9% 4.4% 99% 1.31% 1.29% John Marshall Bank JMSB 786, % 3.6% 8.1% 86.8% 89.9% 9.4% 111% 1.15% 1.15% Middleburg Bank MBRG 1,216, % 4.5% 28.7% 62.0% 90.3% 8.5% 76% 0.55% 0.90% Old Line Bank OLBK 1,220, % 2.1% 13.2% 76.6% 93.5% 5.6% 91% 0.61% 0.56% Sonabank SONA 916, % 4.2% 10.5% 76.8% 92.5% 6.7% 95% 0.87% 0.87% Talbot Bank-Easton, MD SHBI 590, % 11.3% 20.4% 65.0% 99.0% 0.7% 74% 0.23% na United Bank UBSI 7,333, % 10.8% 11.4% 64.7% 79.4% 20.0% 99% 1.08% 1.12% % of Total Loans Parent Ticker ADC / Construction Multifamily O wner- O cc. CRE O ther CRE C&I HELO Cs 1-4 Family 1st Lien FRCV 6.5% 5.6% 16.6% 30.3% 15.0% 6.1% 14.4% Source: FIG Partners Research, SNL Financial LC, FDIC call report filings ANCX CFNL WFBI EGBN JMSB MBRG OLBK SONA SHBI UBSI 5.0% 0.4% 24.3% 14.7% 25.6% 4.3% 23.0% 16.0% 3.3% 12.2% 27.3% 8.9% 4.9% 25.2% 16.7% 3.4% 19.8% 28.7% 12.2% 7.5% 9.9% 18.2% 6.7% 11.0% 29.6% 20.7% 3.4% 6.6% 20.6% 4.7% 19.6% 39.8% 11.9% 1.3% 2.1% 4.4% 1.7% 17.8% 14.3% 20.5% 8.0% 25.7% 8.1% 2.3% 20.6% 35.9% 11.0% 2.3% 16.5% 8.7% 3.3% 20.5% 30.2% 17.2% 1.5% 18.3% 8.5% 3.3% 21.9% 18.2% 9.4% 7.7% 21.2% 15.8% 6.8% 12.7% 31.4% 6.8% 5.6% 14.7% 10

11 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Multifamily: % Vacancy & Asking Rent % Change 2010Y 2011Y 2012Y 2013Y 2014Q4 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y % Vacancy Asking Rent % Change Gauging The Health Of CRE Markets Within The Main Areas Of FRCV s Footprint 7.0% Retail CRE: % Vacancy & Asking Rent % Change Retail CRE remains tight over the next few years but expect some slippage in Multifamily vacancy. Importantly, growth in Rental Rates is forecast to stay positive and exceeding the inflation rate too. 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2010Y 2011Y 2012Y 2013Y 2014Q4 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y Source: FIG Partners Research, REIS CRE data service % Vacancy Asking Rent % Change 11

12 More On FRCV s CRE Market Trends % Office: % Vacancy & Asking Rent % Change 8.0% 5.0% Vacancy remains near 10% with rising Rents in 2014 which are sustained this year and in the near future. We see this as another healthy sign for FRCV s operating footprint. 2.0% (1.0%) 2010Y 2011Y 2012Y 2013Y 2014Q4 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y % Vacancy Asking Rent % Change Source: FIG Partners Research, REIS CRE data service 12

13 Distribution of Ratings Buy/Outperform Hold/Market-Perform Sell/Underperform % Rated 48.3% 51.7% 0.0% IB Client % in Category 31.6% 16.4% 0.0% Equity Rating System as of July 1, 2003 Buy/Outperform O FIG expects that total return of the subject stock will outperform the industry benchmark (BIX) over the next 12 months Hold/Market-Perform M-P FIG expects that total return of the subject stock will perform inline with the industry benchmark (BIX) over the next 12 months Sell/Underperform U FIG expects that total return of the subject stock will under perform the industry benchmark (BIX) over the next 12 months For purposes of FINRA rule 2711, outperform is classified as a buy, market perform is a hold and underperform is a sell. The industry benchmark that we use is the S&P Bank Index referred to as the BIX. Ratings Changes for First Virginia Community Bank (FRCV) Additional Risks to Our Earnings Model Assumptions & Ratings: Unexpected and/or rapid changes in interest rates may have significant negative impact on the company s balance sheet. Likewise, persistently low interest rates, and/or a flat yield curve may add downward pressure to revenues and the absolute level of NIM-Net Interest Margin. Initiate O Declines in asset quality beyond our estimates due to an economic slowdown in the company s operating footprint may require increased expenses for loan losses which could decrease profitability. Further, this may cause an increase in Net Charge-offs, Nonperforming loans, and Classified Assets. New rules set forth by regulatory agencies could reduce future profitability by eliminating certain revenue items, adding additional expenses, or requiring this institution to hold more capital. A similar effect is possible if new legislation (local, state, or federal) is passed. Any regulatory action or litigation against the company could impact future earnings and also affect the public market perception towards this stock. 13

14 Compliance Neither the research analyst nor any member of the analyst s household has any financial interest in the subject company. At the prior month end, neither nor any of its partners or officers owned more than 1% of the outstanding equity securities of the subject company. There are no material conflicts of interest of the analyst or at the time of this report. FIG has not been a manager or co-manager of a public offering of any securities of the recommended issuer within the last 12 months. FIG has not received investment banking compensation from the subject company in the last 12 months. FIG intends to seek investment banking compensation from the subject in the next three months. The subject company is a client of FIG. Neither the analyst nor anyone at FIG serves as an officer, director, or advisory board member of the subject company. FIG will usually make a market in the subject security but was not making a market in this security at the time of this report s publication. All analysts are compensated based on a number of factors including the overall profits of which includes investment banking revenues, but no analyst receives any compensation which is based on a specific investment banking service or transaction. To determine price target, our analysts utilize a variety of valuation techniques including but not limited to: peer analysis, absolute P/E, relative P/E, projected P/E, absolute P/B, relative P/B, projected P/B, deposit premium, and a discounted cash flow model. This research report reflects the analyst s actual opinion. No research analyst is subject to the supervision or control of any employee of the member s investment banking department. No employee of the investment banking department has reviewed or approved this report prior to publication The report has not been approved by the subject company, but may have been reviewed for factual accuracy except for the research summary, research rating and price target. The subject company has not promised directly or indirectly favorable research, a specific rating or a specific price target nor has the subject company been threatened with a change in research as an inducement for business or compensation. Additional information is available by request. The information contained herein has been prepared from sources and data we believe to be reliable but we make no representation as to its accuracy or completeness. The opinions expressed herein are our own unless otherwise noted and are subject to change without notice. The price and value of the securities mentioned herein will fluctuate; past performance is no guarantee of future results. This report is published solely for informational purposes and should not be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell, any security. The securities discussed herein are not suitable for everyone; each investor should assess his or her own particular financial condition and investment objectives before making any investment decisions. may act as principal for its own account or as agent for both buyer and seller in connection with the purchase or sale of any security discussed herein. Reproduction or redistribution of this report in any form is prohibited except with the written permission of. The author is employed by, a broker-dealer. Data sources for the report are Bloomberg Financial L.P., SNL Financial LC, Stockcharts.com, Thompson Financial and regulatory filings. 14