#United States #Potomac Bancshares #Bank of Charles Town #Charlestown

Overview of Potomac Bancshares Performance

Potomac Bancshares, Inc., the bank holding company for the Bank of Charles Town, recently reported significant financial results for the third quarter of 2025. The company has demonstrated a solid growth trajectory with a 32% increase in net income compared to the previous year. This notable rise highlights the effectiveness of the company’s strategy and operational efficiency.

For Q3 2025, Potomac Bancshares detailed a net income of $2.3 million, translating to $0.56 per basic and diluted common share. This marks an increase from the $1.8 million or $0.42 per share recorded in Q3 2024. Furthermore, the nine-month performance ending September 30, 2025, showed a net income of $6.6 million or $1.59 per share, up 36% from the same period last year.

Financial Highlights

Several financial metrics reflect the company’s robust performance:

• - Net Income: Increased 32% YoY
• - Earnings Per Share (EPS): $0.56 compared to $0.42 in the previous year
• - Return on Assets (ROA): Rose to 0.98%, up from 0.79%
• - Return on Equity (ROE): Improved to 11.62% from 9.92%

In addition to these outstanding achievements, Potomac Bancshares also reported a 5% increase in deposit balances and maintained a strong asset quality with non-performing assets (NPAs) at just 0.22% of total assets.

Detailed Review of Q3 Results

The financial strength of Potomac Bancshares can be attributed to several key areas:
1. Net Interest Income: Increased by 6% to $8.1 million, primarily from growth in earning assets and improved net interest margin, which now stands at 3.54%.
2. Noninterest Income: Reached $1.9 million, reflecting an 8% increase from Q2 2025. This growth was propelled by higher earnings from wealth management and investment services as well as gains from mortgage loan sales.
3. Asset Quality: Remains a priority, with loans past due greater than 30 days being very low at 0.09% of total loans. The allowance for credit losses on loans was $7.5 million, maintaining strong credit standards.

Strategic Insights

Alice Frazier, the President and CEO of Potomac Bancshares, emphasized the bank's commitment to growth and operational efficiency. She noted, “Our revenue growth, margin expansion, and disciplined expense management have significantly contributed to our profitability.” Moreover, the company's status as an SBA preferred lender positions it well for future growth opportunities.

Future Outlook

Looking ahead, Potomac Bancshares plans to continue expanding its business lines and enhance client experiences through technology. The positive trend of the company is also underscored by its 11% annual increase in tangible book value per share, now at $19.39. Additionally, the company recently announced a stock repurchase plan, demonstrating their confidence in the business' future performance.

In a move signaling further growth and regional connectivity, Bank of Charles Town will transition to be known as Potomac Bank on November 3, 2025. This name change aims to reflect the bank's growth and regional presence across the Eastern Panhandle of West Virginia, Washington County, Maryland, and Northern Virginia.

Conclusion

Potomac Bancshares is poised for continuous growth, with strategic initiatives in place for further enhancing its market presence and operational capabilities. Investors and stakeholders can look forward to a promising future backed by the company's solid financial performance and strategic foresight.