Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2011

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 17. Parent Company Only Financial Statements

POTOMAC BANCSHARES, INC.
(Parent Company Only)
Balance Sheets
December 31, 2011 and 2010
(in thousands)

	2011			2010
ASSETS
Cash	$	2		$	70
Investment in subsidiary		24 492			25 685
Equity securities available for sale, at fair value		793			858
Other assets		178			163
Total Assets	$	25 465		$	26 776
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Other liabilities	$	- -		$	- -
Total Liabilities	$	- -		$	- -
STOCKHOLDERS’ EQUITY
Common stock	$	3 672		$	3 672
Surplus		3 943			3 932
Undivided profits		22 648			23 725
Accumulated other comprehensive (loss), net		(1 932	)		(1 687	)
	$	28 331		$	29 642
Less cost of shares acquired for the treasury		2 866			2 866
Total Stockholders’ Equity	$	25 465		$	26 776
Total Liabilities and Stockholders’ Equity	$	25 465		$	26 776

POTOMAC BANCSHARES, INC.
(Parent Company Only)
Statements of Operations
Years Ended December 31, 2011, 2010 and 2009
(in thousands)

	2011			2010			2009
Income
Dividends from subsidiary	$	68		$	80		$	977
Interest income		- -			- -			1
Total Income	$	68		$	80		$	978
Expenses
Stock-based compensation expense	$	11		$	34		$	47
Public relations & new business development		5			3			4
Transfer agent expense		16			15			15
Computer services		4			4			3
Director and committee fees		10			9			8
Legal fees		11			17			11
Other professional fees		21			16			63
Postage		5			4			4
Proxy solicitation		9			9			8
Printing, stationery and supplies		13			15			16
Other taxes		1			1			1
Other operating expenses		- -			- -			117
Total Expenses	$	106		$	127		$	297
(Loss) Income before Income Tax (Benefit) and
Equity in Undistributed (Loss) Income
of Subsidiary	$	(38	)	$	(47	)	$	681
Income Tax (Benefit)		(31	)		(31	)		(84	)
(Loss) Income before Equity in Undistributed
(Loss) Income of Subsidiary	$	(7	)	$	(16	)	$	765
Equity in Undistributed (Loss) Income of Subsidiary		(1 003	)		1 810			(3 005	)
Net (Loss) Income	$	(1 010	)	$	1 794		$	(2 240	)

POTOMAC BANCSHARES, INC.
(Parent Company Only)
Statements of Cash Flows
Years Ended December 31, 2011, 2010 and 2009
(in thousands)

	2011			2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(1 010	)	$	1 794		$	(2 240	)
Adjustments to reconcile net (loss) income to net cash
(used in) provided by operating activities:
Equity in undistributed loss (income) of
subsidiary		1 003			(1 810	)		3 005
Stock-based compensation expense		11			34			47
(Increase) decrease in other assets		(5	)		52			68
(Decrease) increase in other liabilities		- -			(1	)		1
Net cash (used in) provided by
operating activities	$	(1	)	$	69		$	881
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends	$	(67	)	$	- -		$	(899	)
Purchase of treasury shares		- -			- -			(29	)
Net cash (used in) financing activities	$	(67	)	$	- -		$	(928	)
(Decrease) increase in cash and cash
equivalents	$	(68	)	$	69			(47	)
CASH AND CASH EQUIVALENTS
Beginning		70			1			48
Ending	$	2		$	70		$	1