Potomac Bancshares, Inc. Reports 2017 Second Quarter Results

FINANCIAL HIGHLIGHTS

POTOMAC BANCSHARES, INC.

Three Months Ended

Six Months Ended

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

June 30, 2017

June 30, 2016

June 30, 2017

June 30, 2016

Earnings Performance

Interest  and Dividend Income

$4,018

$3,559

$7,823

$6,946

Interest Expense

530

430

990

854

Net Interest Income

3,488

3,129

6,833

6,092

Provision For Loan Losses

0

204

180

304

Non-Interest Income

1,369

1,139

3,114

2,171

Non-Interest Expense

3,190

3,044

6,352

6,195

Income  Before Income Tax Expense

1,667

1,020

3,415

1,764

Income Tax Expense

585

362

979

618

Net Income

$1,082

$658

$2,436

$1,146

Return  On Average Equity 

12.43%

8.11%

12.33%

7.11%

Return  On Average Assets 

1.06%

0.73%

1.06%

0.64%

Return  On Average Equity  Core**

12.43%

8.11%

10.39%

7.11%

Return  On Average Assets Core**

1.06%

0.73%

0.89%

0.64%

June 30, 2017

June 30, 2016

Balance Sheet Highlights

Total Assets

$411,126

$370,590

Investment Securities

22,285

28,362

Loans, Net of allowance of $3,385 in 2017 and $2,725 in 2016

345,505

309,297

Deposits And Cash Management Accounts

362,422

324,047

Shareholders' Equity

$35,084

$32,674

Three Months Ended

Six Months Ended

June 30, 2017

June 30, 2016

June 30, 2017

June 30, 2016

Shareholders' Value (per share)

Earnings  Per Share, Basic

$0.32

$0.20

$0.73

$0.34

Earnings  Per Share, Diluted

0.32

0.20

0.73

0.34

Cash Dividends Declared (per share)

0.065

0.060

0.13

0.12

Book Value At Period End (per share)

$10.49

$9.77

$10.49

$9.77

End of period number of shares outstanding

3,345,001

3,345,001

3,345,001

3,345,001

June 30, 2017

June 30, 2016

Safety and Soundness

Tier 1 Capital Ratio (Leverage Ratio)*

8.82%

9.28%

Non-Performing Assets As A Percentage Of 

          Total Assets Including OREO

0.37%

0.44%

Allowance For Loan Losses As A Percentage Of

          Period End Loans

0.97%

0.87%

Ratio Of Net Charge-Offs Annualized During The Period To

          Average Loans Outstanding During The Period

0.09%

* The capital ratios presented are for Bank of Charles Town. 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. The 2017 capital ratio is preliminary.                                                                              

** Excludes the impact in the first quarter of  2017 from Bank Owned Life Insurance (BOLI) proceeds of $670 thousand, net of a beneficiary payment and the related tax benefit on this payment. Excluding this non-recurring income, net income in the first quarter would have been $684 thousand or 20 cents per share compared to "as reported" of $1.354 million and 40 cents per share.