Potomac Bancshares, Inc. Reports 2017 Second Quarter Results

CHARLES TOWN, W.Va., July 24, 2017

CHARLES TOWN, W.Va., July 24, 2017 /PRNewswire/ -- Potomac Bancshares, Inc. (OTC-QB: PTBS), the one bank holding company for Bank of Charles Town (BCT), for the quarter ended June 30, 2017 earned $1.082 million or $0.32 per share compared to $658 thousand or $0.20 per share for the quarter ended June 30, 2016. The increase in income is impacted by a gain on sale of securities of $199 thousand, net of tax.   Excluding this non-recurring income, net income would have been $883 thousand or $0.26 per share.

The core net income increase is driven by several factors. Increases in loan balances (up 12% over 2016) was the primary factor in interest income improving $459 thousand over the second quarter 2016.  Deposits were up 12% over the second quarter 2016. The net interest income increased $359 thousand.  Improved credit quality, as well as a large recovery of a previously charged off loan, resulted in no provision expense for the quarter. 

For the first six months of 2017, net income is up $1.290 million to $2.436 million or $0.73 per share compared to $1.146 million or $0.34 per share in 2016.  Excluding 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 amount, the first six months net income would be $1.766 million or $0.53 per share compared to $0.34 per share.

Total assets were $411.1 million. Loans, net of allowance for loan losses, and total deposits were $345.5 million and $362.4 million, respectively.  

Given the bank's performance and good capital position, the dividend of $0.07 per share for the third quarter was approved at the July board meeting. The dividend will be paid on August 1, 2017 to all shareholders of record on July 25, 2017.

As of June 30, 2017 Potomac Bancshares, Inc. stock was trading at $10.77.  On the same date, book value per share was $10.49.