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.
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FINANCIAL
HIGHLIGHTS
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POTOMAC
BANCSHARES, INC.
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Three Months
Ended
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(Unaudited -
dollars in thousands, except per share data)
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March 31,
2014
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March 31,
2013
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Earnings
Performance
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Interest Income
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$2,949
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$2,818
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Interest Expense
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282
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326
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Net Interest
Income
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2,667
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2,492
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Provision For Loan
Losses
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391
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0
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Non-Interest
Income*
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1,029
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1,058
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Non-Interest
Expense*
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2,799
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2,697
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Income Before Income Tax Expense
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506
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853
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Income Tax
Expense
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159
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287
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Net Income
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$347
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$566
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Annualized Return On
Average Equity
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4.60%
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8.38%
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Annualized Return On
Average Assets
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0.47%
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0.78%
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March 31,
2014
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December 31,
2013
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Balance Sheet
Highlights
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Total Assets
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$300,672
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$296,694
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Investment
Securities
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32,485
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32,554
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Loans, Net
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238,974
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228,264
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Deposits And Cash Management
Accounts
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264,013
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260,955
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Shareholders'
Equity
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29,955
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29,765
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Three Months
Ended
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March 31,
2014
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March 31,
2013
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Shareholders'
Value (per share)
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Earnings Per Share,
Basic
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$0.10
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$0.17
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Earnings Per Share,
Diluted
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0.10
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0.17
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Cash Dividends Declared (per
share)
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0.04
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- -
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Book Value At Period End
(per share)
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$8.84
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$8.11
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March 31,
2014
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December 31,
2013
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Safety and
Soundness
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Tier 1 Capital Ratio
(Leverage Ratio)**
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10.22%
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10.11%
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Non-Performing Assets As A
Percentage Of
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Total Assets Including OREO
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1.90%
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2.02%
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Allowance For Loan Losses As
A Percentage Of
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Period End Loans
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1.42%
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1.35%
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Ratio Of Net Charge-Offs
Annualized During The Period To
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Average Loans Outstanding During The Period
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0.10%
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0.10%
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* Certain comparative
figures have been reclassified to compare with 2014
presentation.
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** 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.
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SOURCE Potomac Bancshares, Inc.