Potomac Bancshares Reports 32% Year-Over-Year Increase in Q3 2025 Earnings

Rhea-AI Summary

Potomac Bancshares (OTCID: PTBS) reported Q3 2025 net income of $2.3M or $0.56 per share, a 32% year‑over‑year increase and a $0.14 per share rise from Q3 2024. Nine‑month net income was $6.6M (+36% YoY). Key metrics: ROA 0.98%, ROE 11.62%, net interest margin 3.54%, efficiency ratio 67.95%, tangible book value per share up 11% YoY to $19.39, and deposits up 11% YoY. The board authorized a stock repurchase plan for up to 100,000 shares or $2.0M through Oct 19, 2027. Bank of Charles Town will be renamed Potomac Bank on Nov 3, 2025.

Positive

• Net income +32% year‑over‑year to $2.3M in Q3 2025
• EPS increased $0.14 year‑over‑year to $0.56
• Tangible book value per share +11% year‑over‑year to $19.39
• Deposits +11% year‑over‑year to $833.4M
• Board authorized stock repurchase plan up to 100,000 shares or $2.0M

Negative

• Net unrealized losses on securities portfolio of $5.0M
• Cost of funds rose 13 basis points quarter‑over‑quarter to 1.94% driven by higher deposit costs

News Market Reaction

+1.75%

1 alert

+1.75% News Effect

On the day this news was published, PTBS gained 1.75%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHARLES TOWN, W.Va., Oct. 29, 2025 /PRNewswire/ -- Potomac Bancshares, Inc. (the "Company") (OTCID: PTBS), the bank holding company of Bank of Charles Town (the "Bank"), reported net income of $2.3 million, or $0.56 per basic and diluted common share, for the third quarter of 2025.

This reflects a 32% increase in net income and a $0.14 per share increase compared to the third quarter of 2024 when the Company reported net income of $1.8 million, or $0.42 per share.

For the nine months ending September 30, 2025, the Company reported net income of $6.6 million, or $1.59 per share. This marks an increase of $1.7 million, or 36%, compared to the same period in 2024 when net income was $4.9 million, or $1.17 per share.

Quarterly Financial Highlights
( in thousands, except per share data)

	Q3 2025	Q2 2025	Q3 2024
Net Income	$2,322	$2,074	$1,761
EPS (basic and diluted)	$0.56	$0.50	$0.42
ROA	0.98 %	0.91 %	0.79 %
ROE	11.62 %	10.83 %	9.92 %
Non-GAAP Measures:
Adj. Net Income	$2,322	$2,141	$1,761
Adj. EPS (basic and diluted)	$0.56	$0.52	$0.42
Adj. ROA	0.98 %	0.94 %	0.79 %
Adj. ROE	11.62 %	11.18 %	9.92 %
Adj. Pre-Provision, Pre-Tax Earnings	$3,193	$2,986	$2,460
Adj. Pre-Provision, Pre-Tax ROA	1.35 %	1.31 %	1.12 %
Net Interest Margin	3.54 %	3.48 %	3.24 %
Efficiency Ratio	67.95 %	68.19 %	71.69 %

Non-GAAP financial measures provide additional insight into the Company's core operating performance by excluding certain non-recurring items. See "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations" for additional information and detailed calculations of adjustments.

"We are pleased with our strong third-quarter performance," said Alice Frazier, President and CEO of Potomac Bancshares.  "Revenue growth, margin expansion, and disciplined expense management contributed to improved profitability. We continue to see strength in our commercial banking division and an opportunity to gain new clients as an SBA preferred lender."

Frazier continued, "Our tangible book value per share increased 11% year-over-year, while maintaining strong asset quality and capital levels. Looking ahead, we remain focused on expanding through our business lines and leveraging technology to enhance client experiences and operational efficiencies."

Third Quarter Highlights

Key highlights of the three-month period ending September 30, 2025, are as follows. Comparisons are to the three-month period ending June 30, 2025, unless otherwise stated:

• Net income increased 12%, and 32% year-over-year
• Return on assets was 0.98%
• Return on equity was 11.62%
• Deposit balances increased 5%, and 11% year-over-year
• Asset quality metrics remained strong with NPAs at 0.22% of total assets
• Tangible book value per share increased 11% year-over-year to $19.39
• Quarterly cash dividend on common stock remained $0.13 per share

Net Interest Income

Net interest income increased $430 thousand, or 6%, to $8.1 million for the third quarter of 2025, driven by growth in earning assets and a higher net interest margin. Total interest and dividend income rose $837 thousand, primarily due to a $765 thousand increase in interest income and fees on loans, reflecting a 20-basis point increase in loan yield to 5.63% and a $20.2 million increase in average balances. Interest expense increased $407 thousand, driven by an 8% rise in deposit costs from a 15-basis point increase in the cost of interest-bearing deposits. The total cost of funds was 1.94%, up 13 basis points from the prior quarter.

Noninterest Income

Noninterest income totaled $1.9 million for the third quarter of 2025, a $148 thousand, or 8%, increase from Q2 2025. The increase was primarily attributable to higher wealth and investment income, gains and fees on mortgage loan sales, and increased ATM and check card fee income.

Noninterest Expense

Noninterest expenses totaled $6.8 million for the third quarter, a $286 thousand, or 4%, increase from the second quarter of 2025. The increase was primarily driven by higher professional fees, trust-related expenses, and other operating costs.

Asset Quality

Overview

Asset quality remained strong during the third quarter. Loans past due greater than 30 days and still accruing interest were 0.09% of total loans as of September 30, 2025. Nonperforming assets as a percentage of total assets were 0.22%. Annualized net charge-offs as a percentage of total loans were 0.01%. The allowance for credit losses on loans totaled $7.5 million, or 1.03% of total loans.

Provision for Credit Losses

Provision for credit losses totaled $200 thousand for the third quarter of 2025 compared to $225 thousand in the second quarter of 2025 and $202 thousand for the third quarter of 2024. While there were no changes in the specific reserve component of the allowance for credit losses, the general reserve component increased during the third quarter of 2025.

Allowance for Credit Losses on Loans

The allowance for credit losses on loans totaled $7.5 million on September 30, 2025, $7.4 million on June 30, 2025, and $7.1 million on September 30, 2024. Net charge-offs totaled $13 thousand in the third quarter of 2025, $45 thousand in the second quarter of 2025, compared to net recoveries of $37 thousand in the third quarter of 2024. Charge-offs were comprised of deposit overdrafts.

The following table provides the changes in the allowance for credit losses on loans for the three-month periods ended:

(dollars in thousands)

	Q3 2025	Q2 2025	Q3 2024
Allowance for credit losses on loans, beginning	$7,359	$7,180	$6,881
Net (charge-offs) recoveries	(13)	(46)	37
Provision for credit losses on loans	159	225	179
Allowance for credit losses on loans, ending	$7,505	$7,359	$7,097

Allowance for Credit Losses on Unfunded Commitments

The allowance for credit losses on unfunded commitments totaled $489 thousand on September 30, 2025, $448 thousand on June 30, 2025, and $361 thousand on September 30, 2024. The provision for credit losses on unfunded commitments totaled $40 thousand for the third quarter of 2025, compared to no provision for credit losses on unfunded commitments in the second quarter of 2025, and $23 thousand in the third quarter of 2024.

Balance Sheet

As of September 30, 2025, total assets were $962.0 million, an increase of $41.7 million, or 18% annualized, from June 30, 2025. As noted below, deposits reflect a short-term large deposit of $25 million which is included in cash.

Loans totaled $732.1 million, a decrease of $4.3 million, or 2% annualized, from the prior quarter. However, quarterly average loans rose to $735.9 million, up $20.2 million, or 11% annualized, from Q2 2025. The decrease in loans during the third quarter was attributable to loan payoffs that were slightly greater than prior periods. On a year-over-year basis, loans increased $45.5 million, or 7%.

Deposits grew to $833.4 million, an increase of $38.6 million, or 19% annualized, from June 30, 2025. The increase was primarily attributable to a large deposit in a client account that was short term in nature during the third quarter. Quarterly average deposits were $808.8 million, up $20.5 million, or 10% annualized, from the prior quarter. Compared to September 30, 2024, total deposits increased $83.7 million, or 11%.

Securities available for sale totaled $77.9 million, up $1.1 million from June 30, 2025, but down $4.2 million from a year ago. Net unrealized losses on the securities portfolio were $5.0 million, a decrease of $1.4 million from the prior quarter and $736 thousand decrease year-over-year.

Other borrowings totaled $32.0 million, compared to $31.8 million on June 30, 2025, and $34.5 million on September 30, 2024. This included $29.0 million borrowed from the Federal Home Loan Bank of Pittsburgh, with a weighted average fixed interest rate of 4.21% and maturities ranging from 2026 to 2028.

Shareholders' equity totaled $80.4 million, an increase of $2.9 million from June 30, 2025, and $7.9 million from September 30, 2024. These increases were primarily driven by growth in retained earnings, which rose $1.8 million quarter-over-quarter and $6.5 million year-over-year. Accumulated other comprehensive loss decreased $1.1 million from the prior quarter and $1.4 million from the prior year.

The following table provides capital ratios at the end of the period:

	Q3 2025	Q2 2025	Q3 2024
Total capital ratio (2)	13.74 %	13.50 %	13.79 %
Tier 1 capital ratio (2)	12.66 %	12.43 %	12.69 %
Common equity Tier 1 capital ratio (2)	12.66 %	12.43 %	12.69 %
Leverage ratio (2)	9.84 %	9.91 %	9.67 %
Tangible common equity to tangible assets (1)(3)	8.35 %	8.42 %	8.32 %

Shareholder Dividend

During the third quarter of 2025, the Company paid a quarterly cash dividend of $0.13 per common share, unchanged from the second quarter and up $0.01 per share, or 8%, from the first quarter of 2025.

Stock Repurchase Plan

On October 19, 2025, the Company's board of directors authorized a stock repurchase plan pursuant to which Potomac Bancshares, Inc. may repurchase up to the aggregate of 100,000 shares or $2.0 million of the Company's outstanding common stock.

Potomac Bancshares, Inc. intends to purchase shares periodically through privately negotiated transactions or in the open market. The Company's board of directors authorized the purchase plan to run through October 19, 2027, unless the entire amount authorized to be repurchased has been acquired before that date. Potomac Bancshares, Inc. intends to fund the repurchase plan with a combination of cash on hand and cash generated from ongoing operations.

There is no guarantee as to the exact number of, or value of, shares that will be repurchased by the Company, and Potomac Bancshares, Inc. may discontinue repurchases at any time that management determines additional repurchases are unwarranted. The timing and amount of share repurchases under the stock repurchase plan will depend on a number of factors, including Potomac Bancshares, Inc. stock price performance, ongoing capital planning considerations, and general market conditions.

Bank of Charles Town Announces New Name

On November 3, 2025, Bank of Charles Town will be renamed Potomac Bank. The transition not only reflects the Bank's significant growth and expanding regional presence across the Eastern Panhandle of West Virginia, Washington County, Maryland, and Northern Virginia, it also affirms the foresight of its Board of Directors who established and named its holding company Potomac Bancshares over 30 years ago.

The name Potomac Bank was chosen to symbolize the powerful connection shared among the diverse communities the bank serves, all united by the namesake Potomac River, which has shaped the region's geography, history, and prosperity. This transition is a natural progression that honors the bank's heritage and values while celebrating the shared connection that unites the bank's identity.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures that the Company's management believes provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets.

The Company believes certain non-GAAP financial measures enhance the understanding of its business, performance, and financial position. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release.

About Potomac Bancshares

Potomac Bancshares, Inc. (OTCID: PTBS) is the bank holding company of Bank of Charles Town, which was founded in 1871. The Bank also does business under the names BCT and The Community's Bank. The Bank conducts operations through its nine branch offices and two loan production offices. The Bank's offices are in Jefferson and Berkeley Counties (WV), Washington County (MD), and Loudoun and Stafford Counties (VA). The Bank 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 permanent loans, as well as home equity loans and lines of credit. For over 70 years, BCT Wealth Advisors has provided caring and personalized trust services, growing into a premier financial management, investments, and estate services provider. The Bank also provides convenient online and mobile banking for individuals, businesses, and local governments plus free access to over 55,000 ATMs through the Allpoint® network plus another approximately 675 free access ATMs through another partnership. BCT was voted WINNER in the LoudounNow 2025 Loudoun's Favorite readers' poll in four categories: Bank, Mortgage Company, Mortgage Broker, and Financial Planner. BCT was voted a "Best of the Best" winner in the 2024 Martinsburg Journal-News Readers' Choice Awards in three categories:  Bank, Loan Services, and Financial Planning. 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. The Bank was named a "Best Bank to Work For" by American Banker five of the last six years.

The Company's shares are quoted on the OTCID 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. Factors that could cause actual results to differ from those discussed in such forward-looking statements include, but are not limited to, the following: (1) general economic conditions, especially in the communities and markets in which the Company conducts its business; (2) credit risk, including risk that negative credit quality trends may lead to a deterioration of asset quality, risk that our allowance for credit losses may not be sufficient to absorb actual losses in the Company's loan portfolio, and risk from concentrations in the Company's loan portfolio; (3) changes in the real estate market, including the value of collateral securing portions of the Company's loan portfolio; (4) changes in the interest rate environment; (5) operational risk, including cybersecurity risk and risk of fraud, data processing system failures, and network breaches; (6) changes in technology and increased competition, including competition from non-bank financial institutions; (7) changes in consumer preferences, spending and borrowing habits, demand for our products and services, and customers' performance and creditworthiness; (8) difficulty growing loan and deposit balances; (9) the Company's ability to effectively execute its business plan; (10) changes in regulations, laws, taxes, government policies, monetary policies and accounting policies affecting bank holding companies and their subsidiaries, including changes in deposit insurance premiums; (11) deterioration in the financial condition of the U.S. banking system may impact the valuations of investments the Company has made in the securities of other financial institutions; (12) regulatory enforcement actions and adverse legal actions; (13) difficulty attracting and retaining key employees; and (14) other economic, competitive, technological, operational, governmental, regulatory, and market factors affecting the Company's operations. 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.

Contacts

Alice P. Frazier	M. Shane Bell
President and CEO	Executive Vice President and CFO
304-728-2431	304-728-2434
afrazier@mybct.bank	sbell@mybct.bank

 

POTOMAC BANCSHARES, INC.
Performance Summary
(in thousands, except share and per share data)
(unaudited)
	For the Three Months Ended							For the Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
		2025		2025		2024		2025		2024
Income Statement
Interest and dividend income:
Interest and fees on loans		$             10,447		$               9,682		$               8,984		$             29,630		$             25,571
Taxable interest on securities		709		710		678		2,134		2,008
Tax-exempt interest on securities		30		28		29		87		86
Other interest and dividends		1,060		989		1,274		2,723		3,135
Total interest and dividend income		$             12,246		$             11,409		$             10,965		$             34,574		$             30,800
Interest expense:
Interest on deposits		$               3,717		$               3,324		$               3,648		$             10,146		$             10,098
Interest on short term borrowings		1		2		7		9		20
Interest on long term borrowings		312		309		217		934		351
Interest on subordinated debt		152		140		140		433		420
Total interest expense		$               4,182		$               3,775		$               4,012		$             11,522		$             10,889
Net interest income		$               8,064		$               7,634		$               6,953		$             23,052		$             19,911
Provision for credit losses		200		225		202		675		511
Net interest income after provision for credit losses		$               7,864		$               7,409		$               6,751		$             22,377		$             19,400
Noninterest Income:
Wealth and investments		$                   525		$                   498		$                   514		$               1,528		$               1,364
Service charges on deposit accounts		217		225		273		702		784
Gains / fees on sale of mortgage loans		408		351		169		1,006		640
ATM and check card fees		543		518		522		1,536		1,535
Income from bank owned life insurance		102		100		98		299		311
Net losses on sale of securities		-		-		-		-		(386)
Net loss on disposal of premises & equipment		(1)		-		(1)		(3)		(1)
Net gain(loss) on sale of SBA loans		-		-		-		-		-
Other operating income		120		74		180		441		481
Total noninterest income		$               1,914		$               1,766		$               1,755		$               5,509		$               4,728
Noninterest expenses:
Salaries and employee benefits		$               3,732		$               3,760		$               3,322		$             10,860		$               9,565
Occupancy		310		310		278		964		820
Equipment		351		344		353		1,071		1,087
Accounting, audit, and compliance		72		70		83		211		191
Advertising and public relations		115		112		103		345		287
Data processing		413		453		485		1,318		1,409
FDIC assessment		111		104		99		314		287
Other professional fees		208		140		206		480		462
Trust professional fees		190		144		119		505		351
Director and committee fees		93		68		75		258		256
Legal fees		47		23		31		103		212
Supplies		55		66		57		200		195
Communications		119		112		99		343		300
ATM and check card expense		269		264		247		773		760
Other operating expenses		700		529		691		1,740		1,700
Total noninterest expenses		$               6,785		$               6,499		$               6,248		$             19,485		$             17,882
Income before income tax expense		$               2,993		$               2,676		$               2,258		$               8,401		$               6,246
Income tax expense		671		602		497		1,817		1,389
Net income		$               2,322		$               2,074		$               1,761		$               6,584		$               4,857

 

POTOMAC BANCSHARES, INC.
Performance Summary
(in thousands, except share and per share data)
(unaudited)
		As of or For the Three Months Ended						As of or For the Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
		2025		2025		2024		2025		2024
Common Share and Per Common Share Data
Earnings per common share, basic		$                 0.56		$                 0.50		$                 0.42		$                    1.59		$                    1.17
Adjusted earnings per common share, basic (1)		$                 0.56		$                 0.52		$                 0.42		$                    1.61		$                    1.25
Weighted average shares, basic		4,144,561		4,144,561		4,144,561		4,144,561		4,144,561
Earnings per common share, diluted		$                 0.56		$                 0.50		$                 0.42		$                    1.59		$                    1.17
Adjusted earnings per common share, diluted (1)		$                 0.56		$                 0.52		$                 0.42		$                    1.61		$                    1.25
Weighted average shares, diluted		4,144,561		4,144,561		4,144,561		4,144,561		4,144,561
Shares outstanding at period end		4,144,561		4,144,561		4,144,561		4,144,561		4,144,561
Tangible book value per share at period end (1)		$               19.39		$               18.70		$               17.49		$                 19.39		$                 17.49
Cash dividends		$                 0.13		$                 0.13		$                 0.12		$                   0.38		$                   0.34
Key Performance Ratios
Return on average assets		0.98 %		0.91 %		0.79 %		0.97 %		0.76 %
Adjusted return on average assets (1)		0.98 %		0.94 %		0.79 %		0.98 %		0.81 %
Return on average equity		11.62 %		10.83 %		9.92 %		11.44 %		9.45 %
Adjusted return on average equity (1)		11.62 %		11.18 %		9.92 %		11.56 %		10.04 %
Net interest margin (1)		3.54 %		3.48 %		3.24 %		3.51 %		3.23 %
Efficiency ratio (1)		67.95 %		68.19 %		71.69 %		67.87 %		71.40 %
Average Balances
Average assets		$          936,572		$          912,253		$          884,167		$             910,244		$             852,667
Average earning assets		905,307		881,485		853,386		879,144		822,962
Average shareholders' equity		79,290		76,808		70,637		76,947		68,676
Asset Quality
Loan charge-offs		$                    23		$                    58		$                    22		$                    103		$                    158
Loan recoveries		10		13		59		43		128
Net charge-offs		13		45		(37)		60		30
Non-accrual loans		2,138		2,245		2,638		2,138		2,638
Other real estate owned, net		-		-		-		-		-
Nonperforming assets (5)		2,138		2,245		2,638		2,138		2,638
Loans 30 to 89 days past due, accruing		694		726		60		694		60
Loans over 90 days past due, accruing		-		151		-		-		-
Special mention loans		15,635		15,711		14,055		15,635		14,055
Substandard loans, accruing		1,125		1,150		1,463		1,125		1,463
NPA/Total Assets		0.22 %		0.24 %		0.30 %		0.22 %		0.30 %
PD/Total Loans		0.09 %		0.10 %		0.01 %		0.09 %		0.01 %
Capital Ratios (2)
Total capital		$          100,875		$             99,097		$             93,943		$             100,875		$               93,943
Tier 1 capital		92,921		91,290		86,485		92,921		86,485
Common equity tier 1 capital		92,921		91,290		86,485		92,921		86,485
Total capital to risk-weighted assets		13.74 %		13.50 %		13.79 %		13.82 %		13.79 %
Tier 1 capital to risk weighted assets		12.66 %		12.43 %		12.69 %		12.73 %		12.69 %
Common equity Tier 1 capital to risk weighed assets		12.66 %		12.43 %		12.69 %		12.73 %		12.69 %
Leverage ratio		9.84 %		9.91 %		9.67 %		9.84 %		9.67 %

 

POTOMAC BANCSHARES, INC.
Performance Summary
(in thousands, except share and per share data)
(unaudited)
		For the Period Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
		2025		2025		2025		2024		2024
Balance Sheet
Cash and due from banks		$              4,648		$               4,638		$               4,673		$               5,143		$               5,014
Interest-bearing deposits in other financial institutions		115,174		67,636		66,844		59,621		67,337
Cash and cash equivalents		$          119,822		$             72,274		$             71,517		$             64,764		$             72,351
Securities available for sale, at fair value		77,935		76,787		76,763		77,385		82,146
Equity securities, at fair value		278		246		243		241		223
Restricted securities		1,932		2,037		2,023		2,103		2,328
Loans held for sale		2,946		5,682		2,234		1,506		1,219
Loans, net of allowance for credit losses		724,611		729,065		709,160		697,132		679,558
Premises and equipment, net		8,164		8,107		8,240		8,099		7,832
Accrued interest receivable		2,592		2,439		2,478		2,283		2,382
Bank owned life insurance		14,275		14,174		14,074		13,977		13,878
Other assets		9,456		9,528		8,851		9,859		9,414
Total assets		$          962,011		$          920,339		$          895,583		$          877,349		$          871,331
Noninterest-bearing  demand deposits		$          204,355		$          176,708		$          186,182		$          171,681		$          172,941
Savings and interest-bearing demand deposits		629,062		618,155		586,200		582,677		576,809
Total deposits		$          833,417		$          794,863		$          772,382		$          754,358		$          749,750
Short term borrowings		3,013		2,793		3,052		3,170		3,503
Long term borrowings		29,000		29,000		29,000		31,000		31,000
Subordinated debt		10,000		9,989		9,973		9,958		9,942
Accrued interest payable		1,037		1,148		987		1,266		1,041
Other liabilities		5,185		5,056		4,140		4,181		3,586
Total liabilities		$          881,652		$          842,849		$          819,534		$          803,933		$          798,822
Common stock		$              4,493		$              4,493		$              4,493		$              4,493		$              4,493
Surplus		14,547		14,547		14,547		14,547		14,547
Retained Earnings		68,815		67,032		65,497		63,806		62,331
Accumulated other comprehensive (loss), net		(4,002)		(5,088)		(4,994)		(5,936)		(5,368)
		$            83,853		$            80,984		$            79,543		$            76,910		$            76,003
Less cost of shares acquired for the treasury		(3,494)		(3,494)		(3,494)		(3,494)		(3,494)
Total shareholders' equity		$            80,359		$            77,490		$            76,049		$            73,416		$            72,509
Total liabilities and shareholders' equity		$          962,011		$          920,339		$          895,583		$          877,349		$          871,331
Loan Data
Construction and land development		$            45,979		$            46,882		$            42,954		$            39,404		$            35,260
Secured by farmland		7,594		6,732		6,707		6,769		6,820
Secured by 1-4 family residential loans		256,973		253,798		250,436		247,299		244,125
Other real estate loans		345,208		355,690		344,953		345,904		340,027
Loans to farmers (except secured by real estate)		128		118		237		190		195
Commercial and industrial loans (except those secured by real estate)		66,965		63,763		61,348		54,205		49,972
Consumer installment loans		2,845		2,860		2,910		2,910		2,994
Deposit overdraft		122		103		85		518		74
All other loans		6,302		6,478		6,710		6,910		7,188
Total loans		$          732,116		$          736,424		$          716,340		$          704,109		$          686,655
Allowance for credit losses		(7,505)		(7,359)		(7,180)		(6,977)		(7,097)
Loans, net		$          724,611		$          729,065		$          709,160		$          697,132		$          679,558

 

POTOMAC BANCSHARES, INC.
Non-GAAP Reconciliations
(in thousands, except share and per share data)
(unaudited)
		As of or for the Three Months Ended						As of or for the Nine Months Ended
		September 30,		June 30,		September 30,		September 30,		September 30,
		2025		2025		2024		2025		2024
Adjusted Net Income
Net income (GAAP)		$               2,322		$               2,074		$               1,761		$                 6,584		$                 4,857
Add: Loss on sale of securities		-		-		-		-		386
Add: Core system conversion expense		-		85		-		85		-
Total adjustments		$                      -		$                     85		$                      -		$                       85		$                     386
Subtract: Tax effect of adjustment (4)		-		(18)		-		(18)		(81)
Adjusted net income (non-GAAP)		$               2,322		$               2,141		$               1,761		$                 6,651		$                 5,162
Adjusted Earnings Per Share, Basic
Weighted average shares, basic		4,144,561		4,144,561		4,144,561		4,144,561		4,144,561
Basic earnings per share (GAAP)		$                 0.56		$                 0.50		$                 0.42		$                    1.59		$                    1.17
Adjusted earnings per share, basic (Non-GAAP)		$                 0.56		$                 0.52		$                 0.42		$                    1.61		$                    1.25
Adjusted Earnings Per Share, Diluted
Weighted average shares, diluted		4,144,561		4,144,561		4,144,561		4,144,561		4,144,561
Diluted earnings per share (GAAP)		$                 0.56		$                 0.50		$                 0.42		$                    1.59		$                    1.17
Adjusted earnings per share, diluted (Non-GAAP)		$                 0.56		$                 0.52		$                 0.42		$                    1.61		$                    1.25
Adjusted Pre-Provision, Pre-tax earnings
Net interest income		$               8,064		$               7,634		$               6,953		$               23,052		$               19,911
Total noninterest income		1,914		1,766		1,755		5,509		4,728
Net revenue		$               9,978		$               9,400		$               8,708		$               28,561		$               24,639
Total noninterest expense		6,785		6,499		6,248		19,485		17,882
Pre-provision, pre-tax earnings		$               3,193		$               2,901		$               2,460		$                 9,076		$                 6,757
Add: Loss on sale of securities		-		-		-		-		386
Add: Core system conversion expense		-		85		-		85		-
Adjusted pre-provision, pre-tax earnings		$               3,193		$               2,986		$               2,460		$                 9,161		$                 7,143
Adjusted Performance Ratios
Average assets		$          936,572		$          912,253		$          884,167		$             910,244		$             852,667
Return on average assets (GAAP)		0.98 %		0.91 %		0.79 %		0.97 %		0.76 %
Adjusted return on average assets (Non-GAAP)		0.98 %		0.94 %		0.79 %		0.98 %		0.81 %
Average shareholders' equity		$             79,290		$             76,808		$             70,637		$               76,947		$               68,676
Return on average equity (GAAP)		11.62 %		10.83 %		9.92 %		11.44 %		9.45 %
Adjusted return on average equity (Non-GAAP)		11.62 %		11.18 %		9.92 %		11.56 %		10.04 %
Pre-provision, pre-tax return on average assets		1.35 %		1.28 %		1.12 %		1.33 %		1.06 %
Adjusted pre-provision, pre-tax return on average assets		1.35 %		1.31 %		1.12 %		1.35 %		1.12 %
Net Interest Margin
Tax-equivalent net interest income		$               8,070		$               7,640		$               6,959		$               23,070		$               19,929
Average earning assets		905,307		881,485		853,386		879,144		822,962
Net interest margin		3.54 %		3.48 %		3.24 %		3.51 %		3.23 %
Efficiency Ratio
Total noninterest expense		$               6,785		$               6,499		$               6,248		$               19,485		$               17,882
Subtract: Core sytstem conversion expense		-		(85)		-		(85)		-
Total noninterest expense subtotal		$               6,785		$               6,414		$               6,248		$               19,400		$               17,882
Tax-equivalent net interest income		$               8,070		$               7,640		$               6,959		$               23,070		$               19,929
Total noninterest income		$               1,914		$               1,766		$               1,755		$                 5,509		$                 4,728
Add: Net losses on disposal of premises & equipment		1		-		1		3		1
Add: Net losses on sale of investment securities, AFS		-		-		-		-		386
Total noninterest income subtotal		1,915		1,766		1,756		5,512		5,115
Subtotal		$               9,985		$               9,406		$               8,715		$               28,582		$               25,044
Efficiency ratio		67.95 %		68.19 %		71.69 %		67.87 %		71.40 %
Tax-Equivalent Net Interest Income
GAAP measures:
Interest income - loans		$             10,447		$               9,682		$               8,984		$               29,630		$               25,571
Interest income - investments taxable		709		710		678		2,134		2,008
Interest income - investments tax exempt		30		29		29		87		86
Interest income - other		1,060		989		1,274		2,723		3,135
Interest expense - deposits		(3,717)		(3,324)		(3,648)		(10,146)		(10,098)
Interest expense - short term borrowings		(1)		(2)		(7)		(9)		(20)
Interest expense - long term borrowings		(312)		(309)		(217)		(934)		(351)
Interest expense - subordinated debt		(152)		(141)		(140)		(433)		(420)
Net interest income		$               8,064		$               7,634		$               6,953		$               23,052		$               19,911
Non-GAAP measures:
Add: Tax benefit realized on non-taxable interest income - municipal securities (4)		$                      6		$                      6		$                      6		$                      18		$                      18
Tax benefit realized on non-taxable interest income		$                      6		$                      6		$                      6		$                      18		$                      18
Tax equivalent net interest income		$               8,070		$               7,640		$               6,959		$               23,070		$               19,929
Tangible Book Value Per Share
Tangible common equity		$             80,359		$             77,490		$             72,509		$               80,359		$               72,509
Common shares outstanding, ending		4,144,561		4,144,561		4,144,561		4,144,561		4,144,561
Tangible book value per share		$               19.39		$               18.70		$               17.49		$                 19.39		$                 17.49

(1) Non-GAAP financial measures. See "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations" for additional information and detailed calculations of adjustments.

(2) Capital ratios are for Bank of Charles Town.

(3) Capital ratios are for Potomac Bancshares, Inc.

(4) The tax rate utilized in calculating the tax benefit is 21%

(5) Nonperforming assets are comprised of nonaccrual loans and other real estate owned.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/potomac-bancshares-reports-32-year-over-year-increase-in-q3-2025-earnings-302597677.html

SOURCE Potomac Bancshares, Inc.

FAQ

What were Potomac Bancshares (PTBS) Q3 2025 earnings per share and net income?

Q3 2025 net income was $2.3M or $0.56 per basic and diluted share, up 32% year‑over‑year.

How did Potomac Bancshares' deposits and loans change in Q3 2025 for PTBS?

Total deposits were $833.4M (up 11% YoY); loans totaled $732.1M (up 7% YoY but down slightly QoQ).

What share repurchase program did Potomac Bancshares announce for PTBS?

The board authorized repurchases of up to 100,000 shares or $2.0M, effective Oct 19, 2025 through Oct 19, 2027.

Will Potomac Bancshares pay a dividend in Q3 2025 and how much is it for PTBS?

Yes; the company paid a quarterly cash dividend of $0.13 per common share in Q3 2025.

What capital and profitability ratios did Potomac Bancshares report for Q3 2025 (PTBS)?

Q3 2025 metrics included ROA 0.98%, ROE 11.62%, and total capital ratio 13.74%.

When will Bank of Charles Town change its name to Potomac Bank and why?

The bank will be renamed Potomac Bank on November 3, 2025 to reflect regional growth and its ties to the Potomac River communities.