Potomac Bancshares, Inc. Reports Strong Year-End Financial Results for 2024

Potomac Bancshares, Inc. Reports Strong Year-End Financial Results

Potomac Bancshares, Inc., the parent company of the Bank of Charles Town, recently reported its financial performance for the fourth quarter and full year of 2024, revealing a solid growth trajectory. For Q4, the company announced an unaudited consolidated net income of $2.0 million, or $0.48 per diluted share. This represents an increase from previous quarters, showcasing the bank's efficient operational strategies and robust market position.

In the full fiscal year ending December 31, 2024, Potomac Bancshares achieved a net income of $6.8 million, translating to $1.65 per diluted share. Adjusted metrics also showed noteworthy advancements, with adjusted net income for Q4 reaching $2.3 million ($0.55 per share) and an annual adjusted net income hitting $7.4 million ($1.80 per share).

Financial Highlights

1. Net Interest Income: The bank's net interest income climbed by 3%, reaching $7.2 million in Q4 2024. The increase is credited to reduced interest expenses, which offset a slight decrease in total interest and investment income.
2. Return on Average Assets (ROA): Potomac recorded an ROA of 0.89%, while the adjusted ROA saw a significant uptick to 1.04%, indicating improved efficiency in asset utilization.
3. Noninterest Income: Total noninterest income showed a robust 18% increase from the preceding quarter, reaching $2.1 million. This rise was largely fueled by a staggering 110% growth in secondary market mortgage revenue and a 13% increase in wealth management income.

Strategic Expansion Initiatives

In addition to financial strengths, Potomac Bancshares is actively enhancing its service offerings. The bank recently remodeled its Martinsburg, West Virginia branch and is set to relocate its Leesburg lending office to a modern facility in Ashburn, Virginia, in early 2025. These moves reflect the company's commitment to improving customer experiences while facilitating growth potential.

Alice P. Frazier, the President and CEO, stated, "Our team has shown remarkable dedication and hard work, leading to a strong conclusion of the year. The results from our strategic initiatives are evident in our improved metrics across all business lines."

Looking Ahead

Potomac Bancshares aims to bolster revenue streams further, particularly in wealth management and commercial lending. The bank's future activities include opening a new lending office in Ashburn designed to cater to both commercial and residential clients. This strategic move is expected to enhance their market presence in Loudoun County and support ongoing growth efforts.

Conclusion

As Potomac Bancshares, Inc. continues to adapt and thrive within the dynamic banking landscape, its focus lies in sustainable growth and superior customer service. With positive momentum heading into 2025, stakeholders can remain optimistic about the bank's forthcoming developments and potential returns.

For further details about Potomac Bancshares and its financial outlook, visit www.mybct.bank.