Potomac Bancshares, Inc. Releases 2014 Second Quarter Results and Declares Dividend

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Jul 18, 2014, 04:25 ET

CHARLES TOWN, W.Va., July 18, 2014 /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, 2014. The Charles Town, West Virginia based company earned $648 thousand or 19 cents per share compared to net income of $588 thousand or 17 cents a share for the quarter ended June 30, 2013. The improvement in income as compared to the same quarter last year is due to growth in both the commercial and mortgage loan portfolios and better overall net interest margins. Income through the first six months of 2014 is $995 thousand or 29 cents per share compared to $1.154 million or 34 cents per share for the first six months of 2013. Baronner said, "Credit conditions continue to improve and real estate values are beginning to show some appreciation in the Eastern Panhandle which is our primary market. Mortgage volume has shifted from primarily refinances to new construction and purchases, which is a good sign that the real estate economy is improving." Baronner added, "Most of our commercial loan growth over the last year continues to come from our two new offices in Middleburg, Virginia and Hagerstown, Maryland."

Regarding the loan production office in Middleburg, the bank plans to expand its product offerings at that location to include non-cash deposit services. This will conveniently allow customers in the Middleburg market to open deposit accounts and make non-cash deposits including loan payments. In addition, the bank also recently completed the formation of an Advisory Board for its Hagerstown office. Baronner said, "We have been extremely fortunate to have local business person Todd Baer chair the Advisory Board. Todd has been instrumental in recruiting very capable business and community leaders to represent BCT in this new market and we have no doubt that we will be very successful."

Based on the bank's performance, the Board of Directors of Potomac Bancshares at its July 2014 meeting declared a 4.25 cent per share dividend for all shareholders of record on July 22, 2014. This cash dividend will be payable on August 1, 2014.

Bank of Charles Town has locations in Charles Town, Harpers Ferry, Kearneysville, Martinsburg, and Hedgesville, West Virginia; Middleburg, Virginia; and Hagerstown, Maryland. 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, 2014	June 30, 2013	June 30, 2014	June 30, 2013
Earnings Performance
Interest Income	$3,016	$2,873	$5,965	$5,691
Interest Expense	293	305	575	631
Net Interest Income	2,723	2,568	5,390	5,060
Provision For Loan Losses	139	0	530	0
Non-Interest Income*	1,172	1,127	2,201	2,185
Non-Interest Expense*	2,803	2,814	5,602	5,511
Income Before Income Tax Expense	953	881	1,459	1,734
Income Tax Expense	305	293	464	580
Net Income	$648	$588	$995	$1,154

Annualized Return On Average Equity			6.63%	8.43%
Annualized Return On Average Assets			0.67%	0.79%

			June 30, 2014	December 31, 2013

Balance Sheet Highlights
Total Assets			$305,511	$296,694
Investment Securities			30,059	32,554
Loans, Net			238,312	228,264
Deposits And Cash Management Accounts			262,436	260,955
Shareholders' Equity			$30,393	$29,765

	Three Months Ended		Six Months Ended

	June 30, 2014	June 30, 2013	June 30, 2014	June 30, 2013

Shareholders' Value *(per share)*
Earnings Per Share, Basic	$0.19	$0.17	$0.29	$0.34
Earnings Per Share, Diluted	0.19	0.17	0.29	0.34
Cash Dividends Declared (per share)			0.085	0.040
Book Value At Period End (per share)			$8.97	$8.20

			June 30, 2014	December 31, 2013

Safety and Soundness
Tier 1 Capital Ratio (Leverage Ratio)**			10.26%	10.11%
Non-Performing Assets As A Percentage Of
Total Assets Including OREO			1.83%	2.02%
Allowance For Loan Losses As A Percentage Of
Period End Loans			1.39%	1.35%
Ratio Of Net Charge-Offs Annualized During The Period To
Average Loans Outstanding During The Period			0.25%	0.10%

* Certain comparative figures have been reclassified to compare with 2014 presentation.
** When computing capital ratios, the net of unrealized holding gains (losses) on securities available for sale and the unfunded liability for pension and other post-retirement benefits, all computed net of tax, are added back to these shareholders' equity figures. Capital ratios are preliminary.