#USA #Charles Town #Q1 2025 #Potomac Bancshares #Bank of Charles Town

Potomac Bancshares Achieves 30% Earnings Growth in First Quarter 2025

On April 28, 2025, Potomac Bancshares, Inc., the holding entity for the Bank of Charles Town, released its financial results for the first quarter of 2025. The figures revealed a robust growth trajectory, with net income soaring by 30% year-over-year to reach $2.2 million. This equates to earnings per share of $0.53, up from $0.40 in the same period last year.

Financial Highlights

In detail, the bank saw its net income increase by $512,000 compared to Q1 2024. Key financial metrics include:

• - Net Income: $2.2 million (up from $1.7 million in Q1 2024)
• - Earnings per Share: $0.53 (up from $0.40)
• - Return on Average Assets: 1.01% (up from 0.81%)
• - Return on Average Equity: 11.88% (up from 10%)

These numbers highlight the strong operational performance of the bank amidst challenging economic conditions. According to Alice P. Frazier, the President and CEO of Potomac Bancshares, these results are a testament to the strategic initiatives the bank has put in place, which have successfully fostered improved profitability and portfolio growth.

Strategic Initiatives and Growth

Frazier emphasized that the disciplined pricing strategy for loans and deposits, coupled with effective expense management, resulted in a wider net interest margin of 3.51%, an increase of 14 basis points from the previous quarter. Moreover, both loan and deposit balances experienced significant growth, with loans increasing by 7% and deposits by 10%, annualized.

In line with these positive trends, the bank also celebrated the grand opening of a new lending office in Ashburn, Virginia. This office is set to expand the bank’s reach in the Loudoun County area and enhance service offerings for commercial and residential loans. Frazier noted, "The new Ashburn office signifies our commitment to growth in strategic markets, underscoring our ongoing focus on serving our clients effectively."

Noninterest Income and Expense Management

Additionally, there was a positive uptick in noninterest income, which totaled $1.8 million for Q1 2025—an increase of 10% from the previous quarter. However, it is important to note that if net losses from the previous quarter's securities sales were excluded, noninterest income would have seen a modest decline.

On the expense side, Potomac Bancshares effectively managed its noninterest expenses, totaling $6.2 million, which is a slight decrease from the prior quarter. Key areas of savings included salary and employee benefits, reflecting the bank's dedication to optimizing its operating model without compromising service quality.

Asset Quality and Credit Losses

When it comes to asset quality, the bank displayed stability, with nonperforming assets comprising just 0.25% of total assets as of March 31, 2025. Provisions for credit losses amounted to $250,000, an increase from no provisions in the previous quarter. This revision was in response to changes in loan growth and evolving economic factors deemed relevant by the bank's management.

Overall, Potomac Bancshares concluded Q1 2025 by declaring a cash dividend of $0.12 per common share, unchanged from the previous quarter, but a notable increase from $0.10 per share a year prior.

Conclusion

Potomac Bancshares, Inc. continues to exhibit commendable performance in early 2025, achieving a significant increase in net income and reinforcing its market position as a pivotal player in community banking within its operational territories. As the bank steers through its growth initiatives, it remains committed to enhancing client relationships and maximizing shareholder value, charting a path of promising prospects ahead.