OTCPK:PTBS

Stock Analysis Report

Executive Summary

Potomac Bancshares, Inc. operates as the bank holding company for Bank of Charles Town that provides various banking products and services to individuals and businesses.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Potomac Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PTBS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.4%

PTBS

2.9%

US Banks

5.3%

US Market


1 Year Return

-26.2%

PTBS

-27.8%

US Banks

-10.7%

US Market

Return vs Industry: PTBS matched the US Banks industry which returned -26.4% over the past year.

Return vs Market: PTBS underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

PTBSIndustryMarket
7 Day12.4%2.9%5.3%
30 Dayn/a-26.3%-13.6%
90 Day-26.0%-39.3%-19.8%
1 Year-24.8%-26.2%-25.6%-27.8%-8.9%-10.7%
3 Year-1.3%-7.1%-17.1%-23.1%15.5%8.0%
5 Year50.7%34.0%10.9%-1.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is Potomac Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Potomac Bancshares undervalued compared to its fair value and its price relative to the market?

41.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PTBS ($10.4) is trading below our estimate of fair value ($17.91)

Significantly Below Fair Value: PTBS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PTBS is poor value based on its PE Ratio (13.4x) compared to the Banks industry average (8.9x).

PE vs Market: PTBS is poor value based on its PE Ratio (13.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PTBS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PTBS is overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Potomac Bancshares forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-1.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Potomac Bancshares has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Potomac Bancshares performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTBS has high quality earnings.

Growing Profit Margin: PTBS's current net profit margins (15.1%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: PTBS's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: PTBS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PTBS had negative earnings growth (-5.3%) over the past year, making it difficult to compare to the Banks industry average (10.9%).


Return on Equity

High ROE: PTBS's Return on Equity (6.5%) is considered low.


Next Steps

Financial Health

How is Potomac Bancshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PTBS has a low level of unsold assets or inventory.

Debt Coverage by Assets: PTBS's debt is covered by short term assets (assets are 6.6x debt).


Financial Institutions Analysis

Asset Level: PTBS's level of assets compared to its equity is low.

Allowance for Bad Loans: PTBS has a sufficient allowance for bad loans.

Low Risk Liabilities: PTBS's liabilities are made up of primarily low risk sources of funding.

Loan Level: PTBS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PTBS's loans are broadly funded by customer deposits.

Level of Bad Loans: PTBS has an appropriate level of bad loans (0.19%)


Next Steps

Dividend

What is Potomac Bancshares's current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PTBS's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: PTBS's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: PTBS's dividend payments have been volatile in the past 10 years.

Growing Dividend: PTBS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), PTBS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Alice Frazier (54yo)

2.75s

Tenure

Ms. Alice Poutasse Frazier has been the Chief Executive Officer and President of Potomac Bancshares, Inc. and Bank of Charles Town (BCT) since July 05, 2017 and serves as it's director since 2017. Ms. Fraz ...


Leadership Team

NamePositionTenureCompensationOwnership
Alice Frazier
President2.75yrsno datano data
Dean Cognetti
CFO, Executive VP8.67yrsUS$200.42kno data
Stephen Cowen
Senior Vice President and Director Of Mortgage Banking2yrsno datano data
Raymond Goodrich
Executive VP & Chief Lending Officer1.92yrsno datano data

2.4yrs

Average Tenure

Experienced Management: PTBS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alice Frazier
President2.75yrsno datano data
J. Boyd
Independent Director21.25yrsUS$13.54kno data
C. Togans
Director16.25yrsUS$13.98kno data
Barbara Pichot
Independent Director16.25yrsUS$13.32kno data
Margaret Cogswell
Director17.25yrsUS$12.55kno data
Keith Berkeley
Chairman of the Board4yrsUS$13.22kno data
Barbara Scott
Independent Director7.92yrsno datano data
Norman Casagrande
Director6.33yrsno datano data
Anthony Zelenka
Director5.25yrsno datano data
Andrew Skinner
Director3.25yrsno datano data

7.1yrs

Average Tenure

61yo

Average Age

Experienced Board: PTBS's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.


Top Shareholders

Company Information

Potomac Bancshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Potomac Bancshares, Inc.
  • Ticker: PTBS
  • Exchange: OTCPK
  • Founded: 1871
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$42.992m
  • Shares outstanding: 4.13m
  • Website: https://www.mybct.com

Location

  • Potomac Bancshares, Inc.
  • 111 East Washington Street
  • PO Box 906
  • Charles Town
  • West Virginia
  • 25414
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTBSOTCPK (Pink Sheets LLC)YesCommon StockUSUSDApr 1998

Biography

Potomac Bancshares, Inc. operates as the bank holding company for Bank of Charles Town that provides various banking products and services to individuals and businesses. The company offers checking accounts, savings accounts, and certificate of deposits. It also provides personal loans, including new and used vehicle, home equity, unsecured home improvement and personal, and lot loans, as well as loans secured by CD, and home equity line of credit; commercial loans, such as construction lines of credit, land acquisition and development, and vehicle and equipment loans, working capital lines of credit, letters of credit, and commercial real estate loans, as well as mortgage loans; and credit card and debit card security services. In addition, the company offers cash management and merchant services; and full service brokerage, retirement and insurance planning, and trust services, as well as mobile and online banking services. It operates eight full service offices and one loan production office in the Eastern Panhandle of West Virginia, Washington County, Maryland and Loudoun County, Virginia. Potomac Bancshares, Inc. was founded in 1871 and is headquartered in Charles Town, West Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 07:15
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.