Potomac Bancshares Posts 60% Earnings Jump Amid Expansion

The bank holding company, which operates in West Virginia, Maryland, and Virginia, reported a return on average assets of 1.32% and a return on average equity of 15.52%. According to President and CEO Alice Frazier, the results reflect disciplined deposit pricing and a favorable trend in earning asset yields. Despite early loan payoffs, the company’s loan portfolio grew 7% on an annualized basis during the quarter.

Potomac Bancshares is currently executing a strategic expansion into the Winchester-Frederick County market in Virginia. The company has already recruited local banking talent and expects to open its first branch in downtown Winchester later in the third quarter. This move is part of a broader effort to capture market share, supported by a 15% increase in the quarterly cash dividend to $0.15 per share. Management maintains that asset quality remains exceptional, with nonperforming assets representing only 0.05% of total assets as of June 30, 2026.