- Current report filing (8-K)
02 November 2010 - 8:18AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of
1934
Date of report (Date of earliest event reported) November 1, 2010
Potomac Bancshares, Inc.
(Exact Name of Registrant as Specified in Charter)
West Virginia
(State of Other Jurisdiction of Incorporation)
0-24958
(Commission File Number)
55-0732247
(IRS Employer Identification No.)
111 E. Washington St., PO Box 906, Charles Town WV 25414-0906
(Address of Principal Executive Offices) (Zip Code)
304-725-8431
Registrants telephone number, including area code
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
q
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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q
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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q
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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q
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Section 2
Financial Information
Item 2.02.
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Results of Operations and Financial Condition.
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For Immediate Release November 1, 2010
Robert F. Baronner Jr., President and CEO of Potomac
Bancshares, Inc., announced the following unaudited results for the third quarter of 2010.
For the third quarter ended September 30,
2010, Potomac Bancshares, Inc. had earnings of 16 cents per basic and diluted share compared to a loss of 47 cents per share for the quarter ended September 30, 2009. Through 9/30/10 the company had net income of $1.39 Million compared to a
loss through nine months of last year of $2.65 Million. The improvement in performance is due to a number of factors to include a substantial reduction in the loan loss provision. The provision for third quarter of 2010 was $213 thousand compared to
$3.54 Million for the third quarter of 2009. Foreclosed property expenses are down substantially from the prior year as are other fixed overhead expenses.
This represents the fourth consecutive profitable quarter for Potomac Bancshares as it continues its efforts to work out problem credits in a difficult economic environment. The loan loss reserve is
currently 2.19% of total loans and covers 246% of non-accruing loans. Delinquency, accounts over 30 days, continued its downward trend ending up the month at less than 2%. Non-performing assets which includes; Other Real Estate Owned and
Non-accruing Loans fell to less than 3% of total assets. We continue to focus our efforts on controlling overhead expense and improving our net interest margin.
The bank suspended the dividend in the fourth quarter of 2009 as one of its primary objectives is to maintain the long term health and well capitalized status of the company. The bank is accomplishing
this objective as evidenced by the table below:
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Actual
9/30/10
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Ratio
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Actual
9/30/09
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Ratio
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Total Capital (to risk weighted assets)
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30,795
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14.15
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%
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27,493
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11.97
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%
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Tier 1 Capital (to risk weighted assets)
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28,048
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12.89
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%
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24,571
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10.70
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%
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Tier 1 Capital (to average assets)
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28,048
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9.31
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%
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24,571
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8.15
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%
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Baronner said, We understand how
important dividends are to shareholders, especially folks that are on a fixed income. However, there is still uncertainty about the economic climate going forward and whether regulators will require higher Tier 1 capital ratios for all banks. As
such, until there is a clearer picture of improvement in the economy and what new capital standards may or may not be, we will continue to retain profits in a continuing effort to build capital. When there are sustained signals the economy is
rebounding and the job picture is improving, we will resume paying cash dividends to shareholders as well.
POTOMAC BANCSHARES,
INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
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(Unaudited)
September
30
2010
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December 31
2009
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Assets:
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Cash and due from banks
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$
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13 938
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$
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6 620
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Interest-bearing deposits in other financial institutions
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53
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Federal funds sold
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1 875
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5 950
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Securities available for sale, at fair value
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37 850
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34 313
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Loans held for sale
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612
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97
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Loans, net of allowance for loan losses of $4,872 and $5,718, respectively
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218 078
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228 993
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Premises and equipment, net
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8 373
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8 726
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Other real estate owned, net of valuation allowance of $102 and $303, respectively
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6 363
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5 632
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Accrued interest receivable
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1 010
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952
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Federal Home Loan Bank of Pittsburgh stock
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805
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805
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Other assets
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10 586
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11 048
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Total Assets
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$
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299 490
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$
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303 189
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Liabilities and Stockholders Equity:
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Liabilities:
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Deposits
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Noninterest-bearing
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$
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25 268
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$
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27 953
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Interest-bearing
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233 307
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236 514
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Total Deposits
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258 575
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264 467
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Securities sold under agreements to repurchase
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8 318
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7 340
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Federal Home Loan Bank advances
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3 013
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3 856
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Accrued interest payable
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386
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405
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Other liabilities
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1 988
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1 549
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Total Liabilities
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$
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272 280
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$
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277 617
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Stockholders Equity:
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Common stock, $1 per share par value; 5,000,000 shares authorized; 3,671,691 shares issued and outstanding
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$
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3 672
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$
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3 672
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Surplus
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3 923
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3 898
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Undivided profits
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23 319
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21 931
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Accumulated other comprehensive (loss), net
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(838
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(1 063
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$
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30 076
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$
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28 438
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Less cost of shares acquired for the treasury, 281,513 shares
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2 866
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2 866
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Total Stockholders Equity
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$
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27 210
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$
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25 572
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Total Liabilities and Stockholders Equity
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$
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299 490
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$
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303 189
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See Notes to Consolidated Financial Statements.
POTOMAC BANCSHARES,
INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data)
(Unaudited)
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For the Three Months
Ended September 30
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For the Nine Months
Ended September 30
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2010
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2009
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2010
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2009
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Interest and Dividend Income:
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Interest and fees on loans
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$
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3 226
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$
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3 429
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$
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9 772
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$
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10 460
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Interest on securities available for sale taxable
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176
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231
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588
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728
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Interest on securities available for sale nontaxable
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50
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37
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148
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108
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Interest on federal funds sold
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1
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1
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3
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4
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Other interest and dividends
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6
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6
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13
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19
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Total Interest and Dividend Income
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$
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3 459
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$
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3 704
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$
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10 524
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$
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11 319
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Interest Expense:
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Interest on deposits
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$
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957
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$
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1 143
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$
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3 058
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$
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3 646
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Interest on securities sold under agreements to repurchase and federal funds purchased
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23
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36
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63
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112
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Federal Home Loan Bank advances
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13
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49
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74
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155
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Total Interest Expense
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$
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993
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$
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1 228
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$
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3 195
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$
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3 913
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Net Interest Income
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$
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2 466
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$
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2 476
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$
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7 329
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$
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7 406
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Provision for Loan Losses
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213
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3 540
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984
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6 677
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Net Interest Income after Provision for Loan Losses
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$
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2 253
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$
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(1 064
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)
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$
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6 345
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$
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729
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Noninterest Income:
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Trust and financial services
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$
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199
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$
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174
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$
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636
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$
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538
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Service charges on deposit accounts
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480
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598
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1 394
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1 632
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Fee income on secondary market loans
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32
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40
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56
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148
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Gain (loss) on sale of other real estate
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25
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232
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167
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268
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Visa/MC Fees
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172
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145
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501
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412
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Cash surrender value of life insurance
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58
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61
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176
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179
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Other operating income
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81
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119
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262
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261
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Total Noninterest Income
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$
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1 047
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$
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1 369
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$
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3 192
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$
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3 438
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Noninterest Expenses:
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Salaries and employee benefits
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$
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1 177
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$
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1 310
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$
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3 579
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$
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3 854
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Net occupancy expense of premises
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161
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141
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495
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414
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Furniture and equipment expenses
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162
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226
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599
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693
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Accounting, auditing and compliance
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48
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36
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114
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157
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Impairment loss on CFSI stock
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117
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FDIC assessment
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142
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225
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416
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459
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Communications
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46
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46
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138
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137
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Printing, stationery and supplies
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34
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48
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136
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168
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ATM and check card expenses
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|
78
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|
72
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|
|
213
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|
|
256
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Foreclosed property expense
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|
177
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|
475
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|
468
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1 193
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Additional write down of OREO property
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|
|
57
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|
17
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|
|
57
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Other operating expenses
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|
506
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|
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|
466
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|
|
1 326
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|
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1 357
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Total Noninterest Expenses
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$
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2 531
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$
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3 102
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$
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7 501
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$
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8 862
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|
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Income (Loss) before Income Tax Expense (Benefit)
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$
|
769
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$
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(2 797
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)
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$
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2 036
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$
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(4 695
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)
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Income Tax Expense (Benefit)
|
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|
241
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|
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(1 204
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)
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|
648
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(2 050
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)
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Net Income (Loss)
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$
|
528
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|
$
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(1 593
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)
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$
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1 388
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|
|
$
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(2 645
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)
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Earnings (Loss) Per Share, basic and diluted
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$
|
.16
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|
$
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(.47
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)
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|
$
|
.41
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|
|
$
|
(.78
|
)
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|
|
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See Notes to Consolidated Financial Statements.
Potomac Bancshares Inc. is the one
bank holding company for Bank of Charles Town, based in Charles Town, West Virginia.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
POTOMAC BANCSHARES, INC.
|
|
/s/ Robert F. Baronner, Jr.
|
Robert F. Baronner, Jr., President and CEO
|
November 1, 2010
|
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