Potomac Bancshares, Inc. Releases 2012 Full Year Earnings

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Jan 29, 2013, 10:47 ET

CHARLES TOWN, W.Va., Jan. 29, 2013 /PRNewswire/ -- For the quarter ended December 31, 2012, Potomac Bancshares, Inc. earned $502 thousand or $0.15 cents per share compared to $471 thousand or $0.14 cents a share for the quarter ended September 30, 2012, an improvement of 7%. For the twelve months ended December 31, 2012, Potomac Bancshares, Inc. earned $1.64 million or $0.48 cents per share as compared to a loss of $1.01 million and ($0.30) cents per share for the twelve months ended December 31, 2011.

"During 2012, we continued to see signs that the economy was stabilizing as real estate prices in our area stopped declining and demand for both new and existing housing picked up," stated President and CEO Robert F. Baronner, Jr. "For the first time in a number of years, we experienced loan growth with loans net of reserve of $211.4 million at 12/31/12 compared to $202.8 million at 12/31/11, an increase of 4.2%. We had a record year for residential mortgage production and began to see our commercial loan portfolio grow once again. In 2012, 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 4.74% at 12/31/11 to 2.97% at 12/31/12."

Baronner reports, "As we enter 2013 and beyond, we are more committed than ever to the idea that the community banking model is best for the customer, best for the community and most importantly, best for our shareholders. BCT's long-term strategy includes improving efficiency, and keeping up to date with the latest in products, services, technology and security. As the economy continues to improve, we have plans to expand into other markets in order to grow our footprint, diversify our loan portfolios, and improve earnings."

Bank of Charles Town, a wholly-owned subsidiary of Potomac Bancshares, Inc., is a community bank with five branches 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 friendly staff at 304-725-8431.

FINANCIAL HIGHLIGHTS POTOMAC BANCSHARES, INC.


	Three Months Ended		Twelve Months Ended

(Unaudited - dollars in thousands, except per share data)	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011
Earnings Performance
Interest Income	$2,890	$3,047	$11,702	$12,571
Interest Expense	353	557	1,603	2,900
Net Interest Income	2,537	2,490	10,099	9,671
Provision For Loan Losses	75	617	881	3,343
Non-interest Income	1,110	1,268	4,290	4,368
Non-interest Expense	2,772	2,659	11,104	12,956
Income Before Income Tax Expense (Benefit)	800	482	2,404	(2,260)
Income Tax Expense (Benefit)	298	120	765	(1,250)
Net Income (Loss)	$502	$362	$1,639	($1,010)

Annualized Return On Average Equity			6.18%	N/M
Annualized Return On Average Assets			0.56%	N/M

N/M = Not meaningful
			Dec 31, 2012	Dec 31, 2011
Balance Sheet Highlights
Total Assets			$296,811	$287,393
Investment Securities			32,236	42,331
Loans, Net			211,364	202,761
Deposits And Cash Management Accounts			266,402	256,532
Shareholders' Equity*			26,923	25,465

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2012	Dec 31, 2011
Shareholders' Value *(per share)*
Earnings (Loss) Per Share, Basic	$0.15	$0.11	$0.48	($0.30)
Earnings (Loss) Per Share, Diluted	0.15	0.11	0.48	(0.30)
Cash Dividends Declared (per share)			-	0.02
Book Value At Period End (per share)			$7.94	$7.51

			Dec 31, 2012	Dec 31, 2011
Safety and Soundness
Tier 1 Capital Ratio (Leverage Ratio)*			9.15%	8.56%
Non-Performing Assets As A Percentage Of Total Assets Including OREO			2.97%	4.74%
Allowance For Loan Losses As A Percentage Of Period End Loans			1.69%	2.16%
Ratio Of Net Charge-Offs Annualized During The Period To Average Loans Outstanding During The Period			0.82%	1.84%

*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.