- Current report filing (8-K)
03 March 2012 - 7:38AM
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)
March 2, 2012
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:
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Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
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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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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. Results of Operations and
Financial Condition.
For Immediate Release March 2, 2012
Robert F.
Baronner Jr., President and CEO of Potomac Bancshares, Inc., announced the
following fourth quarter and full year 2011 unaudited results for Potomac
Bancshares, Inc., the one bank holding company for Bank of Charles Town located
in Charles Town, West Virginia.
For the fourth quarter ended 12/31/11, Potomac Bancshares, Inc. generated
net income of 11 cents per basic and diluted share which is 1 cent shy of the
net income generated per share for the fourth quarter of 2010. For the twelve
months ended 12/31/11, total net loss was $1.01 Million compared to net income
of $1.79 Million for the twelve months ended 12/31/10. Basic and diluted loss
per share for the year ended 12/31/11, was 30 cents compared to earnings in 2010
of 53 cents per basic and diluted share.
Contributing to the net loss for 2011 compared to 2010 was an increase in
the loan loss provision of $1.7 million and increased costs associated with
foreclosed properties of $2.6 million. As previously communicated to our
shareholders, the charges primarily occurred in the third quarter of 2011.
For 2011, the bank was able to maintain a fairly strong non-interest
income level of $4.4 million and net interest income of $9.7 million which is
consistent with the previous two years.
Both Tier One Leverage Capital and Total Risked Based Capital levels in
2011 decreased from 2010 levels as evidenced by the table below. The decrease is
the result of the net loss in 2011. Given the previous mentioned charges to
earnings and its effect on capital we will not pay a dividend this quarter. Note
that the bank continues to maintain its well capitalized status even after
taking these charges to earnings. Once credit conditions begin to improve, then
at that time we would expect improved profitability.
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(Unaudited)
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Actual
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Actual
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12/31/11
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Ratio
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12/31/10
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Ratio
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Total Capital (to risk weighted
assets)
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27,481
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13.13
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%
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30,798
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14.24
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%
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Tier 1 Capital (to risk weighted assets)
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24,842
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11.87
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%
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28,065
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12.97
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%
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Tier 1 Capital (to average
assets)
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24,842
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8.56
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%
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28,065
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9.36
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%
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2
POTOMAC BANCSHARES, INC. AND
SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31, 2011 and 2010
($ in thousands, except share data)
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(unaudited)
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2011
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2010
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ASSETS
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Cash and due from
banks
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$
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1 485
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$
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2 185
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Interest-bearing deposits in other financial institutions
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11
445
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7 995
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Federal funds
sold
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794
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2 725
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Securities available for sale, at fair value
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42
331
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42 690
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Loans held for
sale
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198
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76
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Loans, net of allowance for loan losses of $4,484
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in 2011 and $5,012 in
2010
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202
761
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214 238
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Premises and
equipment, net
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7
923
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8 270
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Other
real estate owned, net of valuation allowance
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of $2,197 in 2011 and $95 in
2010
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6
393
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6 563
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Accrued interest
receivable
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832
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960
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Bank
owned life
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6
932
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6 397
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Federal Home Loan
Bank of Pittsburgh stock
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808
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765
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Other
assets
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5 491
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4 745
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Total Assets
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$
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287 393
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$
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297 609
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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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37
050
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$
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26
695
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Interest-bearing
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216 067
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230 727
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Total Deposits
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253
117
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257
422
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Securities sold under
agreements to repurchase
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3 415
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7 382
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Federal Home Loan Bank
advances
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1
523
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2
717
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Accrued interest
payable
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204
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361
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Other liabilities
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3
669
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2
951
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Total Liabilities
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$
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261 928
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$
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270 833
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STOCKHOLDERS EQUITY
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Common stock, $1 per share par
value; 5,000,000 shares
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authorized; 3,671,691 shares issued
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$
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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
943
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3
932
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Undivided profits
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22 648
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23 725
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Accumulated other
comprehensive (loss), net
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(1 932
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(1 687
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$
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28 331
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$
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29 642
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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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25 465
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$
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26 776
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Total Liabilities and Stockholders Equity
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$
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287 393
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$
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297 609
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3
POTOMAC BANCSHARES, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31, 2011, 2010 and 2009
($ in thousands, except
per share data)
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(Unaudited)
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2011
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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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11
648
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$
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12
923
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$
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13
801
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Interest on securities available for sale - taxable
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660
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755
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933
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Interest on securities
available for sale - nontaxable
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231
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202
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148
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Interest on federal funds sold
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1
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3
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7
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Other interest and
dividends
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31
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21
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24
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Total Interest and Dividend Income
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$
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12 571
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$
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13 904
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$
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14 913
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Interest Expense:
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Interest on deposits
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$
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2
804
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$
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3
972
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$
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4
772
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Interest on securities sold under agreements to repurchase
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and federal funds purchased
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59
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84
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148
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Interest on Federal Home Loan
Bank and Federal Reserve
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Bank advances
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37
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87
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201
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Total Interest Expense
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$
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2 900
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$
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4 143
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$
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5 121
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Net Interest Income
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$
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9 671
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$
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9 761
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$
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9 792
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Provision for Loan Losses
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3 343
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1 599
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6 690
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Net Interest Income after Provision
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for Loan Losses
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$
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6 328
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$
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8 162
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$
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3 102
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Noninterest Income:
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Trust and financial
services
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$
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894
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$
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842
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$
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758
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Service
charges on deposit accounts
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1 831
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1 854
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2 205
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Visa/MC Fees
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759
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676
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563
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Cash
surrender value of life insurance
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234
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235
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238
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Miscellaneous income
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287
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38
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4
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Gain on
sale of securities
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- -
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- -
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42
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Other operating
income
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363
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431
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471
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Total Noninterest Income
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$
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4 368
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$
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4 076
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$
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4 281
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Noninterest Expenses:
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Salaries and employee
benefits
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$
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4
980
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$
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4
731
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$
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5
351
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Net
occupancy expense of premises
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629
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648
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570
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Furniture and equipment
expenses
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912
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783
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948
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Accounting, audit and compliance
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189
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145
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194
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Computer services and online
banking
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331
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184
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91
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Loss
(gain) on sale of other real estate
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343
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(223
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(776
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FDIC assessment
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453
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563
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711
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Printing, stationery and supplies
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195
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182
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207
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Communications
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187
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183
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184
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Foreclosed property expense
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551
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677
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1 272
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Write down of other real
estate
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2
182
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17
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303
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ATM and
check card expense
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344
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291
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326
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Other operating
expenses
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1 660
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1 583
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1 678
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Total Noninterest Expenses
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$
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12 956
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$
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9 764
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$
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11 059
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(Loss) Income Before Income Tax (Benefit) Expense
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$
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(2
260
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)
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$
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2
474
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$
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(3
676
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)
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Income Tax (Benefit) Expense
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(1 250
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)
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|
680
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(1 436
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Net (Loss) Income
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$
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(1 010
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)
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$
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1 794
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$
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(2 240
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(Loss) Earnings Per Share, basic and
diluted
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$
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(.30
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)
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$
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.53
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$
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(.66
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)
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4
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.
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Robert F. Baronner, Jr., President and
CEO
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March 2, 2012
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5
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