Potomac Bancshares, Inc. Releases: 2013 Second Quarter Results

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Jul 22, 2013, 11:20 ET

CHARLES TOWN, W.Va., July 22, 2013 /PRNewswire/ -- Robert F. Baronner Jr., President and CEO, of Potomac Bancshares, Inc., (OTC-QB: PTBS), the One Bank Holding Company for Bank of Charles Town, announced its quarterly results for the period ending June 30, 2013. The Charles Town, West Virginia based company earned $588 thousand or 17 cents per share for the quarter ended June 30, 2013 compared to net income of $346 thousand or 10 cents a share for the quarter ended June 30, 2012. This represents an improvement in earnings of 70% over the same period last year. Year to date earnings through June 30, 2013 are 34 cents per share compared to 19 cents for the first six months of 2012. Loans, net of reserve for the quarter ended June 30, 2013, were $220.6 million compared to $211.4 million at year end December 31, 2012, an improvement of 8.7% on an annualized basis.

Based on the continued improvement in the bank's performance and the overall economic outlook in the bank's trade area, the Board of Directors of Potomac Bancshares at its July 9, 2013 meeting declared a 4 cent per share dividend for all shareholders of record on July 22, 2013. This cash dividend will be payable on August 1, 2013.

As previously announced, the Board also adopted a Dividend Reinvestment and Direct Stock Purchase Plan for shareholders and an Employee Stock Purchase Plan through its transfer agent, American Stock Transfer and Trust Co., LLC. Baronner said, "We're very pleased to offer our shareholders an easy and convenient way to build their investment in Potomac Bancshares." He added, "We're also very excited that employees will now be able to invest on a biweekly basis in Potomac Bancshares stock and give them an ownership interest in their company and a stake in its future success."

When ready for distribution, the Dividend Reinvestment Plan will be mailed to all registered shareholders with enrollment information. Shareholders who are interested in participating will need to complete an enrollment form and return the same to American Stock Transfer. It is expected the plan will be in place early in the fourth quarter of 2013.

The bank also announced its intent to open a new full service branch in Hagerstown, Maryland early in the fourth quarter of 2013, subject to regulatory approval. Baronner said, "This office will give us additional growth opportunities and some further industry diversification for our commercial loan portfolio going forward. Our Market Executive, Steve Michael, has been working the Washington County Maryland market for over a year and we believe we can fulfill a niche in small business financial services in the greater Hagerstown area."

Bank of Charles Town has full service locations in Charles Town, Harpers Ferry, Kearneysville, Martinsburg and Hedgesville, West Virginia. The bank also opened a new loan production office in Middleburg, Virginia earlier this year. For more information, visit us online at www.mybct.com or speak to our staff at 304-725-8431.


FINANCIAL HIGHLIGHTS
POTOMAC BANCSHARES, INC.



	Three Months Ended		Six Months Ended

(Unaudited - dollars in thousands, except per share data)	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Earnings Performance
Interest Income	$2,873	$2,924	$5,691	$5,866
Interest Expense	305	410	631	869
Net Interest Income	2,568	2,514	5,060	4,997
Provision For Loan Losses	0	470	0	779
Non-Interest Income	1,092	1,047	2,116	2,086
Non-Interest Expense	2,779	2,609	5,442	5,373
Income Before Income Tax Expense	881	482	1,734	931
Income Tax Expense	293	136	580	265
Net Income	$588	$346	$1,154	$666

Annualized Return On Average Equity			8.43%	5.13%
Annualized Return On Average Assets			0.79%	0.46%

			June 30, 2013	December 31, 2012

Balance Sheet Highlights
Total Assets			$299,201	$296,811
Investment Securities			29,666	32,236
Loans, Net			220,599	211,364
Deposits And Cash Management Accounts			263,751	266,402
Shareholders' Equity*			27,805	26,923

	Three Months Ended		Six Months Ended

	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012

Shareholders' Value (per share)
Earnings Per Share, Basic	$0.17	$0.10	$0.34	$0.19
Earnings Per Share, Diluted	0.17	0.10	0.34	0.19
Cash Dividends Declared (per share)			0.04	- -
Book Value At Period End (per share)			$8.20	$7.75

			June 30, 2013	December 31, 2012

Safety and Soundness
Tier 1 Capital Ratio (Leverage Ratio)*			9.72%	9.15%
Non-Performing Assets As A Percentage Of
Total Assets Including OREO			2.60%	2.97%
Allowance For Loan Losses As A Percentage Of
Period End Loans			1.52%	1.69%
Ratio Of Net Charge-Offs Annualized During The Period To
Average Loans Outstanding During The Period			0.21%	0.82%