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

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Oct 24, 2014, 03:34 ET

CHARLES TOWN, W.Va., Oct. 24, 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 September 30, 2014. The Charles Town, West Virginia based company earned $556 thousand or 16 cents per share compared to net income of $620 thousand or 18 cents a share for the quarter ended September 30, 2013. Cumulative earnings through the first nine months of this year are lower compared to last year primarily due to an increase in the loan loss provision. A portion of the increase in the provision is due to loan growth and a portion is allocated to a specific loan that was put on non-accrual status during the third quarter. The net loan portfolio has grown $17.6 million or 7.7% since year end and deposits, including cash management accounts, grew $8 million or 3.1% since year end as well.

Baronner reports, "We are optimistic about our new locations in Hagerstown, Maryland and Middleburg, Virginia." He added, "Although we are carrying the added expense of both offices, we expect the incremental loan and deposit growth from these locations will pay dividends sooner than later for the bank. Deposit growth is lagging behind loan demand and we are employing strategies to change that dynamic to include new business products, offering more competitive time deposit pricing and the ability to open accounts and take non-cash deposits at our Middleburg office."

Based on the bank's performance, the Board of Directors of Potomac Bancshares at its October 2014 meeting declared a 4.25 cent per share dividend for all shareholders of record on October 27, 2014. This cash dividend will be payable on November 3, 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 one of our staff at 304-725-8431.

FINANCIAL HIGHLIGHTS
POTOMAC BANCSHARES, INC.



	Three Months Ended		Nine Months Ended

(Unaudited - dollars in thousands, except per share data)	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Earnings Performance
Interest Income	$3,024	$2,902	$8,989	$8,593
Interest Expense	330	308	905	939
Net Interest Income	2,694	2,594	8,084	7,654
Provision For Loan Losses	223	0	753	0
Non-Interest Income*	1,154	1,192	3,355	3,377
Non-Interest Expense*	2,796	2,894	8,398	8,405
Income Before Income Tax Expense	829	892	2,288	2,626
Income Tax Expense	273	272	737	852
Net Income	$556	$620	$1,551	$1,774

Annualized Return On Average Equity			6.82%	8.53%
Annualized Return On Average Assets			0.69%	0.80%

			September 30, 2014	December 31, 2013

Balance Sheet Highlights
Total Assets			$310,188	$296,694
Investment Securities			32,175	32,554
Loans, Net			245,870	228,264
Deposits And Cash Management Accounts			268,938	260,955
Shareholders' Equity			$30,769	$29,765

	Three Months Ended		Nine Months Ended

	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013

Shareholders' Value *(per share)*
Earnings Per Share, Basic	$0.16	$0.18	$0.46	$0.52
Earnings Per Share, Diluted	0.16	0.18	0.46	0.52
Cash Dividends Declared (per share)			0.1275	0.0800
Book Value At Period End (per share)			$9.08	$8.33

			September 30, 2014	December 31, 2013

Safety and Soundness
Tier 1 Capital Ratio (Leverage Ratio)**			10.14%	10.11%
Non-Performing Assets As A Percentage Of
Total Assets Including OREO			2.97%	2.02%
Allowance For Loan Losses As A Percentage Of
Period End Loans			1.45%	1.35%
Ratio Of Net Charge-Offs Annualized During The Period To
Average Loans Outstanding During The Period			0.15%	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.