Potomac Bancshares, Inc. Reports 2018 First Quarter Results

CHARLES TOWN, W.Va., April 30, 2018 /PRNewswire/ -- Potomac Bancshares, Inc. (OTC-QB: PTBS), the one bank holding company for Bank of Charles Town (BCT), for the quarter ended March 31, 2018 earned $900 thousand or $0.27 per share compared to $1.354 million or $0.40 per share for the quarter ended March 31, 2017.  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, net income would have been $684 thousand or $0.20 cents per share. The increase in net income in the first quarter of 2018 compared to 2017 excluding the impact from BOLI would have been  $216 thousand or a $0.07 per share increase over 2017.   

Total assets were up $23.4 million over the first quarter of 2017 or 6%. Loans were up 2% over the same period a year ago.  Deposits and cash management accounts were $23.5 million greater than 2017 or up 6.5%. While the first quarter loan growth was slower than expected, positive variances over the year ago quarter in net interest income, loan loss provision, and non-interest income excluding non-recurring income, were partly offset by a non-interest expense increase as continued growth and staffing plans were rolled out.  In addition, the first quarter of 2018 was positively impacted by the reduction in the corporate tax rate to 21%. Credit quality remained favorable in the quarter with the non-performing asset ratio at 0.42%.   

Linked Quarter:

Q1 2018 Compared to Q1 2017:

"As announced last quarter we are moving ahead with our plans with expansion into Purcellville, Loudoun County, VA.  We are on track to open late second quarter or early third quarter.  We are excited to have a team of bankers very familiar with the Purcellville market," said CEO Frazier.  "In addition, we are moving forward with the launch of a loan production office in Leesburg, VA.  Hiring is underway with the addition of two experienced mortgage bankers with over 20 years' experience in the Loudoun market. These new hires joined BCT in April and will eventually be situated in Leesburg, VA. This initiative is designed to help grow both mortgage fee income and business lending. Both initiatives are part of our strategy for continued expansion in growth markets," said CEO Frazier. 

A dividend of $0.07 per share for the second quarter was approved at the April board meeting. The dividend will be paid on May 1, 2018 to all shareholders of record on April 23, 2018.

As of March 31, 2018 Potomac Bancshares, Inc. stock was trading at $15.30.  On the same date, book value per share was $10.93. Should you need information on PTBS, feel free to contact President & CEO Alice P. Frazier.  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 Loudoun County, Virginia.  For more information, visit our website at http://www.mybct.com/.

 

FINANCIAL HIGHLIGHTS

POTOMAC BANCSHARES, INC.









Three Months Ended

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






March 31, 2018

March 31, 2017

Earnings Performance




Interest and Dividend Income

$4,113

$3,805


Interest Expense

576

460


Net Interest Income

3,537

3,345


Provision For Loan Losses

66

180


Non-Interest Income

1,058

1,745


Non-Interest Expense

3,375

3,162



Income  Before Income Tax Expense

1,154

1,748


Income Tax Expense

254

394



Net Income

$900

$1,354







Return  On Average Equity 

10.07%

10.22%


Return  On Average Assets 

0.86%

0.89%







Return  On Average Equity  Core**

10.07%

8.23%


Return  On Average Assets Core**

0.86%

0.71%









March 31, 2018

March 31, 2017






Balance Sheet Highlights




Total Assets

$432,177

$408,798


Investment Securities

31,998

23,385


Loans, Net of allowance of $3,690 in 2018 and $3,328 in 2017

344,217

338,205


Deposits And Cash Management Accounts

382,438

358,952


Shareholders' Equity

$36,321

$34,337









Three Months Ended









March 31, 2018

March 31, 2017






Shareholders' Value (per share)




Earnings  Per Share, Basic

$0.27

$0.40


Earnings  Per Share, Diluted

0.27

0.40


Earnings  Per Share, Basic Core**

0.27

0.20


Earnings  Per Share, Diluted Core**

0.27

0.20


Cash Dividends Declared (per share)

0.0700

0.0650


Book Value At Period End (per share)

$10.93

$10.27


End of period number of shares outstanding

3,323,001

3,345,001









March 31, 2018

March 31, 2017






Safety and Soundness




Tier 1 Capital Ratio (Leverage Ratio)*

9.15%

9.12%


Non-Performing Assets As A Percentage Of 





Total Assets Including OREO

0.42%

0.41%


Allowance For Loan Losses As A Percentage Of





Period End Loans

1.06%

0.97%


Ratio Of Net (Recoveries) Charge-Offs Annualized During The Period To





Average Loans Outstanding During The Period

-0.039%

0.065%






* 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 capital ratios are 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 of 2017 would have been $684 thousand or 20 cents per share compared to "as reported" of $1.354 million and 40 cents per share.

 



CONTACT: Alice P. Frazier, President & CEO, Potomac Bancshares, Inc. & BCT, 304-728-2431; Dean Cognetti, EVP & CFO, Potomac Bancshares, Inc. & BCT, 304-728-2434