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

CHARLES TOWN, W.Va., April 25, 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 March 31, 2014. The Charles Town, West Virginia based company earned $347 thousand or 10 cents per share compared to net income of $566 thousand or 17 cents a share for the quarter ended March 31, 2013. The reduction in earnings as compared to the same quarter last year is due to a number of factors. First, the loan loss provision was up $391 thousand compared to the same period last year as a result of higher than expected loan growth in conjunction with a weak business climate in the first quarter. Secondly, start-up expenses and added payroll associated with the Middleburg loan production office and the new Hagerstown branch as compared to last year reduced the quarter's profitability. And third, secondary market fee income was down $77 thousand compared to the same period last year due to a decline in the volume of mortgage refinancing. Loans, net of reserve, for the quarter ended March 31, 2014 were $239 million compared to $228 million at year end December 31, 2013, an improvement of 19% on an annualized basis.  

Baronner reports, "We had good growth in our loan portfolio during the first quarter and are getting consistent top line growth in our interest income for the first time in a number of years. Many of our business customers reported weaker than normal business conditions during the first quarter due primarily to the severe weather conditions; but overall, we are still optimistic about an improving economy." Baronner added, "The investments we've made in both Middleburg and Hagerstown will temporarily reduce earnings; however, these locations have exceeded our initial projections and we expect them to break even and start generating positive returns sooner than expected."   

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

SOURCE Potomac Bancshares, Inc.