Potomac Bancshares Inc. reported unaudited earnings results for fourth quarter and full year ended December 31, 2014. For the quarter ended December 31, 2014, the company earned $608,000 or 18 cents per basic and diluted share compared to $554,000 or 16 cents per basic and diluted share for the quarter ended December 31, 2013, an improvement of 10%. Interest income was $3,083,000 compared to $2,894,000 for the same period a year ago. Net interest income was $2,713,000 compared to $2,593,000 for the same period a year ago. Income before income tax expense was $930,000 compared to $790,000 for the same period a year ago.

For the year ended December 31, 2014, the company earned $2.16 million or 64 cents per basic and diluted share compared to earnings of $2.33 million or 69 cents per basic and diluted share for the year ended December 31, 2013, a decrease of 7.3%. The reasons for the decline in earnings are, there was an increase in the loan loss provision of $1.1 million in 2014 compared to 2013 and the decline, which was anticipated, was due to the incremental expenses incurred with the expansion into the Hagerstown, Maryland market. Interest income was $12,072,000 compared to $11,487,000 for the same period a year ago. Net interest income was $10,797,000 compared to $10,247,000 for the same period a year ago. Income before income tax expense was $3,218,000 compared to $3,416,000 for the same period a year ago. Annualized return on average equity was 7.06% compared to 8.30% for the same period a year ago. Annualized return on average assets was 0.70% compared to 0.79% for the same period a year ago. Book value as at December 31, 2014 was $8.86 compared to $8.78 at the same period a year ago.