Potomac Bancshares, Inc. Releases 2013 Full Year Earnings

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Feb 03, 2014, 12:37 ET

CHARLES TOWN, W.Va., Feb. 3, 2014 /PRNewswire/ -- For the quarter ended December 31, 2013, Potomac Bancshares, Inc. (OTC-QB: PTBS) earned $554 thousand or $0.16 cents per share compared to $502 thousand or $0.15 cents a share for the quarter ended December 31, 2012, an improvement of 7%. For the twelve months ended December 31, 2013, the company earned $2.328 million or $0.69 cents per share as compared to $1.639 million and $0.48 cents per share for the twelve months ended December 31, 2012, an improvement of 44%. "During 2013, the economy continued to improve and we once again experienced record mortgage volume," stated President and CEO Robert F. Baronner, Jr. "With the recent opening of the bank's seventh office in Hagerstown, Maryland and our new Loan Production office in Middleburg, Virginia, we are optimistic about the prospects for growth in 2014." Loans compared to last year, net of reserve, grew from $211.4 million to $228.3 million, an increase of 8%. Credit quality continued to improve as non-performing assets (non-accruing loans and other real estate owned) as a percentage to total assets declined from 2.97% to just 2.02% at 12/31/13.

Based on the fourth quarter's performance, the Board of Directors of Potomac Bancshares at its January 2014 meeting declared a dividend of 4.25 cents per share for all shareholders of record as of January 27, 2014. The cash dividend will be payable on February 3, 2014. Additionally, in the fourth quarter, Norman Casagrande, owner and member of Code Plus Components LLC in Spring Mills, West Virginia was elected to the Board of Directors of both Bank of Charles Town and Potomac Bancshares, Inc. Code Plus is a manufacturer of roof trusses and engineered beams for the housing industry. Baronner said of Casagrande, "Norman brings a wealth of knowledge about the residential construction industry to our company as he and his partners were able to navigate through one of the most difficult residential construction real estate markets in recent history. His perspective will be an invaluable asset to our board as the economy and residential housing business continues to recover."

Bank of Charles Town, a wholly-owned subsidiary of Potomac Bancshares, Inc., is a community bank with 7 offices serving the Eastern Panhandle of West Virginia and the surrounding region. 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		Twelve Months Ended

(Unaudited - dollars in thousands, except per share data)	December 31, 2013	December 31, 2012	December 31, 2013	December 31, 2012
Earnings Performance
Interest Income	$2,894	$2,890	$11,487	$11,702
Interest Expense	301	353	1,240	1,603
Net Interest Income	2,593	2,537	10,247	10,099
(Recovery of) Provision For Loan Losses	(300)	75	(300)	881
Non-Interest Income*	1,190	1,146	4,567	4,460
Non-Interest Expense*	3,293	2,808	11,698	11,274
Income Before Income Tax Expense	790	800	3,416	2,404
Income Tax Expense	236	298	1,088	765
Net Income	$554	$502	$2,328	$1,639

Annualized Return On Average Equity			8.30%	6.18%
Annualized Return On Average Assets			0.79%	0.56%

			December 31, 2013	December 31, 2012

Balance Sheet Highlights
Total Assets			$296,694	$296,811
Investment Securities			32,554	32,236
Loans, Net			228,264	211,364
Deposits And Cash Management Accounts			260,955	266,402
Shareholders' Equity			29,765	26,923

	Three Months Ended		Twelve Months Ended

	December 31, 2013	December 31, 2012	December 31, 2013	December 31, 2012

Shareholders' Value *(per share)*
Earnings Per Share, Basic	$0.16	$0.15	$0.69	$0.48
Earnings Per Share, Diluted	0.16	0.15	0.69	0.48
Cash Dividends Declared (per share)			0.12	- -
Book Value At Period End (per share)			$8.78	$7.94

			December 31, 2013	December 31, 2012

Safety and Soundness
Tier 1 Capital Ratio (Leverage Ratio)**			10.11%	9.15%
Non-Performing Assets As A Percentage Of
Total Assets Including OREO			2.02%	2.97%
Allowance For Loan Losses As A Percentage Of
Period End Loans			1.35%	1.69%
Ratio Of Net Charge-Offs Annualized During The Period To
Average Loans Outstanding During The Period			0.10%	0.82%


* Certain comparative figures have been reclassified to compare with 2013 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.