Potomac Bancshares, Inc. Releases 2014 First Quarter Results and Declares Dividend - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

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

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SOURCE Potomac Bancshares, Inc.

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.


FINANCIAL HIGHLIGHTS

POTOMAC BANCSHARES, INC.



















Three Months Ended






(Unaudited - dollars in thousands, except per share data)

March 31, 2014

March 31, 2013

Earnings Performance





     Interest Income



$2,949

$2,818

     Interest Expense



282

326

     Net Interest Income



2,667

2,492

     Provision For Loan Losses



391

0

     Non-Interest Income*



1,029

1,058

     Non-Interest Expense*



2,799

2,697

          Income  Before Income Tax Expense



506

853

     Income Tax Expense



159

287

          Net Income 



$347

$566






     Annualized Return  On Average Equity



4.60%

8.38%

     Annualized Return  On Average Assets



0.47%

0.78%









March 31, 2014

December 31, 2013






Balance Sheet Highlights





     Total Assets



$300,672

$296,694

     Investment Securities



32,485

32,554

     Loans, Net



238,974

228,264

     Deposits And Cash Management Accounts


264,013

260,955

     Shareholders' Equity



29,955

29,765









Three Months Ended









March 31, 2014

March 31, 2013






Shareholders' Value (per share)





     Earnings  Per Share, Basic



$0.10

$0.17

     Earnings  Per Share, Diluted



0.10

0.17

     Cash Dividends Declared (per share)



0.04

- -

     Book Value At Period End (per share)



$8.84

$8.11









March 31, 2014

December 31, 2013






Safety and Soundness





     Tier 1 Capital Ratio (Leverage Ratio)**



10.22%

10.11%

     Non-Performing Assets As A Percentage Of 




          Total Assets Including OREO



1.90%

2.02%

     Allowance For Loan Losses As A Percentage Of




          Period End Loans



1.42%

1.35%

     Ratio Of Net Charge-Offs Annualized During The Period To



          Average Loans Outstanding During The Period


0.10%

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.



©2012 PR Newswire. All Rights Reserved.

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