CHARLES TOWN, W.Va., May 7, 2024 /PRNewswire/ -- Potomac Bancshares, Inc. (the "Company") (OTC: PTBS), the one bank holding company for Bank of Charles Town (BCT), for the quarter ended March 31, 2024, earned $1.675 million or $0.40 per share compared to $2.042 million or $0.49 per share for the quarter ended March 31, 2023, and $1.710 million in the fourth quarter of 2023 or $0.41 per share.
The quarter ended December 31, 2023, was impacted by a $154 thousand pre-tax loss on sales of securities. Excluding this loss, the earnings for the fourth quarter of 2023 would have been $1.830 million or $0.44 per share.
Alice P. Frazier, CEO and President, commented, "The first quarter of 2024 was slower than years past in terms of portfolio loan and deposit growth. There continues to be hesitation by businesses to borrow for growth. After five years of steady growth in both balance sheets and earnings, this timid borrowing climate is a change for us. However, this gives us a great opportunity to further focus on operational improvements. In addition, our sales teams are intentional with their activities towards our strategic initiatives and niche business programs. Other actions taken, including periodic restructurings of the bond portfolio, have helped partially mitigate pressure from rising deposit costs. Our efforts on efficiency continue to be a keen focus as we manage to hold profitability in the forefront."
Frazier continued, "We were extremely pleased to announce a 20% increase in the dividend. The increase reflects the consistent success we are having executing on our strategic growth goals."
Selected Highlights
Linked Quarter Q1 2024 Compared to Q4 2023
Q1 2024 Compared to Q1 2023
Dividend Announcement
At our April Board meeting, Potomac Bancshares, Inc.'s Board of Directors declared a quarterly dividend of $0.12 per share, a 20.0% increase from the previous quarter's dividend. The dividend is for all shareholders of record on May 3, 2024, and will be paid on May 10, 2024,
About the Company
Founded in 1871, BCT - Bank of Charles Town, also known as The Community's Bank, is a wholly owned subsidiary of Potomac Bancshares, Inc. (OTC:PTBS). The Company conducts operations through its main office, an additional eight branch offices, and two loan production offices. BCT's offices are in Jefferson and Berkeley Counties (WV), Washington County (MD), and Loudoun and Stafford Counties (VA). The Bank provides various banking products and services including free access to over 55,000 ATMs through the Allpoint® network plus online and mobile banking for individuals, businesses, and local governments. The Bank also offers commercial lines and term loans, residential and commercial construction loans, commercial real estate loans, agricultural loans, and government contractor loans. The Bank is also a Small Business Administration (SBA) Preferred Lender. The Residential Lending division offers secondary market and portfolio mortgage loans, one-time close construction to perm loans, as well as home equity loans and lines of credit. For over 70 years, BCT Wealth Advisors has provided trust services, growing into a premier financial management, investments, and estate services provider. In 2023, American Banker selected BCT as a "Top 200 Community Bank," an annual listing of the best performing banks in the United States with assets under $2 billion. BCT was voted a "Best of the Best" winner in the 2023 Journal-News Readers' Choice Awards in four categories: Bank, Mortgage Company, Loan Services, and Financial Planning. In 2023, 2021, 2020, and 2019 the Bank was named a "Best Bank To Work For" by American Banker.
The Company's shares are quoted on the OTC Pink Sheet marketplace under the symbol "PTBS." For more information about Potomac Bancshares, Inc., and the Bank, please visit our website at www.mybct.bank.
Forward Looking Statements
Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the Company's growth strategy and deployment of capital. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law.
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||
TABLE 1 | ||||||||||||
Three Months Ended | ||||||||||||
(Unaudited - dollars in thousands, except per share data) | ||||||||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||||
Earnings Performance | ||||||||||||
Interest and dividend income | $9,747 | $9,827 | $9,176 | $8,548 | $8,032 | |||||||
Interest expense | 3,356 | 3,034 | 2,752 | 2,272 | 1,509 | |||||||
Net interest income | 6,391 | 6,793 | 6,424 | 6,276 | 6,523 | |||||||
Provision for credit losses | 180 | - | - | 191 | 31 | |||||||
Non-interest income | 1,614 | 1,662 | 1,633 | 1,667 | 1,337 | |||||||
Non-interest expense | 5,662 | 6,266 | ** | 5,821 | *** | 5,467 | 5,186 | |||||
Income Before Income Tax Expense | 2,163 | 2,189 | 2,236 | 2,285 | 2,643 | |||||||
Income tax expense | 488 | 479 | 507 | 502 | 601 | |||||||
Net Income | $1,675 | $1,710 | $1,729 | $1,783 | $2,042 | |||||||
Return on average equity | 10.00 % | 11.21 % | 11.86 % | 11.41 % | 13.52 % | |||||||
Return on average assets | 0.81 % | 0.85 % | 0.93 % | 0.91 % | 1.09 % | |||||||
Net interest margin | 3.16 % | 3.29 % | 3.23 % | 3.28 % | 3.57 % | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||||
Balance Sheet Highlights | ||||||||||||
Total assets | $855,330 | $830,555 | $809,607 | $794,015 | $792,332 | |||||||
Investment securities | 84,972 | 84,127 | 82,575 | 85,350 | 88,605 | |||||||
Loans held for sale | 2,210 | 678 | 2,159 | 2,086 | 292 | |||||||
Loans, net of allowance for credit losses | 648,804 | 644,687 | 643,921 | 638,381 | 620,436 | |||||||
Deposits | 762,927 | 739,680 | 721,253 | 706,660 | 704,717 | |||||||
Long term FHLB borrowings | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 | |||||||
Subordinated debt, net of issuance costs | 9,912 | 9,897 | 9,882 | 9,868 | 9,854 | |||||||
Shareholders' equity | $67,760 | $66,874 | $62,770 | $62,441 | $62,416 | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||||
Shareholders' Value (per share) | ||||||||||||
Earnings per share, basic | $0.40 | $0.41 | $0.42 | $0.43 | $0.49 | |||||||
Earnings per share, diluted | $0.40 | 0.41 | 0.42 | 0.43 | 0.49 | |||||||
Cash dividends declared (per share) | $0.10 | 0.10 | 0.10 | 0.09 | 0.09 | |||||||
Book value at period end (per share) | $16.35 | $16.14 | $15.15 | $15.07 | $15.06 | |||||||
End of period number of shares outstanding | 4,144,561 | 4,144,561 | 4,144,561 | 4,144,561 | 4,144,561 | |||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||||
Safety and Soundness | ||||||||||||
Tier 1 capital ratio (leverage ratio)* | 9.98 % | 9.77 % | 9.93 % | 10.04 % | 10.25 % | |||||||
Tangible Equity/Tangible Assets | 7.92 % | 8.05 % | 7.75 % | 7.86 % | 7.88 % | |||||||
Non-performing assets as a percentage of | ||||||||||||
total assets including OREO | 0.32 % | 0.32 % | 0.33 % | 0.33 % | 0.00 % | |||||||
Allowance for credit losses as a percentage of | ||||||||||||
period end loans | 1.04 % | 1.02 % | 1.04 % | 1.05 % | 1.05 % | |||||||
Ratio of net charge offs (recoveries) annualized during the period to | ||||||||||||
average loans outstanding during the period | 0.013 % | 0.046 % | 0.004 % | -0.011 % | -0.009 % |
* The capital ratio presented is 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. |
** Includes $154 thousand pre tax loss on sale of securities. |
*** Includes $274 thousand pre tax loss on sale of securities. |
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||
TABLE 2 | |||||||||||
(Unaudited - dollars in thousands) | |||||||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||||
Noninterest Income: | |||||||||||
Wealth and Investments | $418 | $471 | $453 | $425 | $390 | ||||||
Service charges on deposit accounts | 246 | 254 | 266 | 266 | 230 | ||||||
Secondary market income | 196 | 140 | 223 | 232 | 82 | ||||||
Interchange fees | 493 | 506 | 515 | 523 | 484 | ||||||
Other operating income | 261 | 291 | 176 | 221 | 151 | ||||||
Total Noninterest Income | $1,614 | $1,662 | $1,633 | $1,667 | $1,337 | ||||||
Noninterest Expenses: | |||||||||||
Salaries and employee benefits | 2,984 | 3,348 | $3,083 | $3,061 | $2,863 | ||||||
Net occupancy expense of premises | 276 | 256 | 261 | 254 | 259 | ||||||
Furniture and equipment expenses | 367 | 341 | 349 | 369 | 334 | ||||||
Advertising and public relations | 68 | 92 | 105 | 133 | 66 | ||||||
Computer services and communications | 529 | 485 | 486 | 454 | 409 | ||||||
Other professional services | 348 | 410 | 329 | 258 | 289 | ||||||
ATM and check card expenses | 249 | 258 | 243 | 275 | 227 | ||||||
Loss on sale of AFS securities | - | 154 | 274 | - | - | ||||||
Other operating expenses | 841 | 922 | 691 | 663 | 739 | ||||||
Total Noninterest Expenses | $5,662 | $6,266 | $5,821 | $5,467 | $5,186 |
CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||
TABLE 3 | ||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||
(Unaudited - dollars in thousands) | 3/31/2024 | 12/31/2023 | 3/31/2023 | |||||||||
ASSETS: | Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||
Interest Earning Assets: | ||||||||||||
Loans: | ||||||||||||
Loans held for sale | $ 1,144 | $ 14 | 4.92 % | $ 1,327 | $ 22 | 6.58 % | $ 559 | $ 9 | 6.53 % | |||
Portfolio loans (1) | 652,667 | 8,225 | 5.07 % | 650,485 | 8,205 | 5.00 % | 625,192 | 7,316 | 4.75 % | |||
Available for sale securities (2) | 93,519 | 664 | 2.86 % | 93,172 | 638 | 2.72 % | 97,790 | 551 | 2.29 % | |||
Federal Reserve | 62,804 | 801 | 5.13 % | 71,448 | 920 | 5.11 % | 14,055 | 125 | 3.61 % | |||
Other interest earning assets | 2,357 | 43 | 7.34 % | 2,438 | 42 | 6.83 % | 2,696 | 31 | 4.66 % | |||
Total Interest Earning Assets | 812,491 | $ 9,747 | 4.82 % | 818,870 | $ 9,827 | 4.76 % | 740,292 | $ 8,032 | 4.40 % | |||
Other Assets | 19,361 | 16,866 | 17,836 | |||||||||
Total Assets | $ 831,852 | $ 835,736 | $ 758,128 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Interest-bearing liabilities: | ||||||||||||
Interest-bearing Deposits | $ 576,456 | $ 3,142 | 2.19 % | $ 585,485 | $ 2,819 | 1.91 % | $ 506,352 | $ 1,266 | 1.01 % | |||
Federal Funds and repurchase agreements | 3,343 | 7 | 0.84 % | 3,791 | 8 | 0.84 % | 3,842 | 7 | 0.74 % | |||
Subordinated debt | 9,902 | 140 | 5.69 % | 9,887 | 139 | 5.58 % | 9,845 | 139 | 5.73 % | |||
FHLB advances | 6,000 | 67 | 4.49 % | 6,000 | 68 | 4.50 % | 8,858 | 97 | 4.44 % | |||
Total Interest-Bearing Liabilities | 595,701 | $ 3,356 | 2.27 % | 605,163 | $ 3,034 | 1.99 % | 528,897 | $ 1,509 | 1.16 % | |||
Non-interest-bearing deposits and other liabilities | 168,770 | 166,910 | 167,982 | |||||||||
Total Liabilities | 764,471 | 772,073 | 696,879 | |||||||||
Stockholders' Equity | 67,381 | 63,663 | 61,249 | |||||||||
Total Liabilities and Stockholders' Equity | $ 831,852 | $ 835,736 | $ 758,128 | |||||||||
Interest Rate Spread | 2.55 % | 2.77 % | 3.24 % | |||||||||
Net Interest Income | $ 6,391 | $ 6,793 | $ 6,523 | |||||||||
Net Interest Margin | 3.16 % | 3.29 % | 3.57 % |
(1) Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs. |
(2) Average balances exclude unrealized gains/losses. |
SOURCE Potomac Bancshares, Inc.
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