Potomac Bancshares, Inc. Releases 2016 Fourth Quarter And Full Year Results

CHARLES TOWN, W. Va., Feb. 15, 2017

The net income for the quarter bounced back from the third quarter of 2016, which was impacted by the sale of an old parcel of foreclosed property and the additional valuation write-down of a non-performing loan.  The net income for the fourth quarter of 2016 is below the fourth quarter of 2015, as 2015 was positively impacted by the payment on a non-performing loan.  In addition, the loan loss provision in the fourth quarter of 2016 compared to the same period in 2015 was up $400 thousand.  The increase in loan volume has required an increase in the provision for loan losses.  We continue to expect to collect on the principal balance of loans that had been charged off several years ago.  As noted in our prior quarter earnings release, these collection efforts continue; however, the timing is less predictable.  Credit quality ratios compare favorably to the year ago period.

At the January Board meeting, based on the bank's performance and good capital position, a dividend of 6.5 cents per share was approved to all shareholders of record on January 24, 2017. This cash dividend was paid on February 1, 2017.

On January 22, 2017, we were saddened by the passing of our long time President and CEO, Robert F. Baronner, Jr., at age 58, after a long battle with cancer.  Mr. Baronner served as President, CEO, and a member of the Board of Directors of Potomac Bancshares, Inc. and BCT since January 2001.  He was devoted to the Bank, its customers, shareholders, and employees.  We will continue to honor his legacy by upholding our Core Values, our Monster Service Principles in the way we conduct business with our customers and giving back to the local communities we serve.

Should you need information on PTBS, feel free to contact Acting President, Arch A. Moore III at 304-728-2497.  As always, thank you for your support.

Bank of Charles Town, a wholly owned subsidiary of Potomac Bancshares, Inc., is a locally owned community bank with seven convenient offices serving the Eastern Panhandle of West Virginia, Washington County, Maryland and Middleburg, Virginia.  For more information, visit our website at www.mybct.com or speak to our staff by calling 304-725-8431.