Potomac Bancshares, Inc. Releases: 2013 Third Quarter Results

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Oct 22, 2013, 04:30 ET

CHARLES TOWN, W.Va., Oct. 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 September 30, 2013. The Charles Town, West Virginia based company earned $620 thousand or 18 cents per share for the quarter ended September 30, 2013 compared to net income of $471 thousand or 14 cents a share for the quarter ended September 30, 2012. This represents an improvement in earnings of 32% over the same period last year. Year to date earnings through September 30, 2013 are 52 cents per share compared to 34 cents for the first nine months of 2012. Loans, net of reserve for the quarter ended September 30, 2013, were $221.6 million compared to $211.4 million at year end December 31, 2012, an improvement of 6.5% on an annualized basis.

Based on the bank's performance, the Board of Directors of Potomac Bancshares at its October 8, 2013 meeting declared a 4 cent per share dividend for all shareholders of record on October 22, 2013. This cash dividend will be payable on November 1, 2013.

Earlier in the year the Board also adopted a Dividend Reinvestment & Direct Stock Purchase and Sale Plan for shareholders through its transfer agent, American Stock Transfer and Trust Co., LLC. A mailing was sent to shareholders in September explaining how to enroll in both the Dividend Reinvestment and Direct Stock Purchase Plan. Any questions regarding the plans can be directed to CFO Dean Cognetti who can be reached at (304) 728-2434 or via e-mail at [email protected].

Baronner also announced the bank received regulatory approval in the third quarter to open a new full service branch in Hagerstown, Maryland. The office will be managed by Market Executive Steve Michael and will concentrate on small business lending in conjunction with cash management services and mortgage lending. This location at 1101 Frederick Street in Hagerstown is currently being renovated and is expected to open in November. The bank also opened a new loan production office in Middleburg, Virginia earlier this year. Baronner said, "The Middleburg location thus far has exceeded our expectations for loan production during its first six months of operation. We expect this office and the new Hagerstown location will make significant contributions to our growth in 2014."

Bank of Charles Town has full service locations in Charles Town, Harpers Ferry, Kearneysville, Martinsburg, and Hedgesville, West Virginia and a loan production office located at 2 West Washington Street in Middleburg, Virginia. 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		Nine Months Ended

(Unaudited - dollars in thousands, except per share data)	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012
Earnings Performance
Interest Income	$2,902	$2,946	$8,593	$8,812
Interest Expense	308	381	939	1,250
Net Interest Income	2,594	2,565	7,654	7,562
Provision For Loan Losses	0	27	0	806
Non-Interest Income	1,159	1,094	3,275	3,180
Non-Interest Expense	2,861	2,959	8,303	8,332
Income Before Income Tax Expense	892	673	2,626	1,604
Income Tax Expense	272	202	852	467
Net Income	$620	$471	$1,774	$1,137

Annualized Return On Average Equity			8.53%	5.77%
Annualized Return On Average Assets			0.80%	0.52%

			September 30, 2013	December 31, 2012

Balance Sheet Highlights
Total Assets			$294,395	$296,811
Investment Securities			32,852	32,236
Loans, Net			221,621	211,364
Deposits And Cash Management Accounts			257,571	266,402
Shareholders' Equity*			28,256	26,923

	Three Months Ended		Nine Months Ended

	September 30, 2013	September 30, 2012	September 30, 2013	September 30, 2012

Shareholders' Value *(per share)*
Earnings Per Share, Basic	$0.18	$0.14	$0.52	$0.34
Earnings Per Share, Diluted	0.18	0.14	0.52	0.34
Cash Dividends Declared (per share)			0.08	- -
Book Value At Period End (per share)			$8.33	$7.89

			September 30, 2013	December 31, 2012

Safety and Soundness
Tier 1 Capital Ratio (Leverage Ratio)*			9.98%	9.15%
Non-Performing Assets As A Percentage Of
Total Assets Including OREO			2.47%	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			0.14%	0.82%


*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.