<HTML>
<HEAD>
<TITLE>Charles Town, WV, Jan</TITLE>
</HEAD>
<BODY>
<B><P ALIGN="CENTER">UNITED STATES</P>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">WASHINGTON, DC  20549</P>
</B><P ALIGN="CENTER"></P>
<FONT SIZE=2><P ALIGN="CENTER"><HR WIDTH="22%" SIZE=2></P>
</FONT><P ALIGN="CENTER"></P>
<B><FONT SIZE=4><P ALIGN="CENTER">FORM 8-K</P>
</FONT><P ALIGN="CENTER"></P>
<FONT SIZE=4><P ALIGN="CENTER">CURRENT REPORT</P>
</FONT><P ALIGN="CENTER">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
</B><FONT SIZE=2><P ALIGN="CENTER">Date of report (Date of earliest event reported)</FONT><B> November 14, 2007</P>
</B><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">Potomac Bancshares, Inc.</P>
</B><FONT SIZE=2><P ALIGN="CENTER">(Exact Name of Registrant as Specified in Charter)</P>
</FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">West Virginia</P>
</B><FONT SIZE=2><P ALIGN="CENTER">(State of Other Jurisdiction of Incorporation)</P>
</FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">0-24958</P>
</B><FONT SIZE=2><P ALIGN="CENTER">(Commission File Number)</P>
</FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">55-0732247</P>
</B><FONT SIZE=2><P ALIGN="CENTER">(IRS Employer Identification No.)</P>
</FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">111 E. Washington St., PO Box 906, Charles Town WV  25414-0906</P>
</B><FONT SIZE=2><P ALIGN="CENTER">(Address of Principal Executive Offices)  (Zip Code)</P>
</FONT><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">304-725-8431</P>
</B><FONT SIZE=2><P ALIGN="CENTER">Registrant's telephone number, including area code</P>
<U><P ALIGN="CENTER"></P>
</U></FONT><B><P ALIGN="CENTER">N/A</P>
</B><FONT SIZE=2><P ALIGN="CENTER">(Former Name or Former Address, if Changed Since Last Report)</P>
</FONT><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<P>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:</P>
<UL>
<LI>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</LI></UL>
<UL>
<LI>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</LI></UL>
<UL>
<LI>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act </LI></UL>
<DIR>
<P>(17 CFR 240.14d-2(b))</P>
</DIR>
<UL>
<LI>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</LI></UL>
<B><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">Section 2 - Financial Information</P>
<P ALIGN="CENTER"></P>
<P>Item 2.02.&#9;Results of Operations and Financial Condition.</P>
</B><P>For Immediate Release November 14, 2007</P>
<P>Robert F. Baronner Jr. President and CEO of Potomac Bancshares, Inc. announced the following unaudited results for the third quarter of 2007. </P>
<P>Net income and diluted earnings per share for Potomac Bancshares, Inc. for both the quarter and nine months ended September 30, 2007 declined modestly compared with the results for the same periods ended September 30, 2006.  While the results of operations are disappointing, they clearly depict the underlying strength of Bank of Charles Town, a conservatively managed and well capitalized bank.  The results of operations are still very respectable given the unprecedented decline in the real estate market.  The bank has no exposure to sub-prime loans and does not anticipate any substantive loan losses.</P>
<P>The bank has experienced a slight reduction in net loans outstanding due to reduced demand and continues to see its net interest margin squeezed.  The continued increase in noninterest income has offset some of this reduction.  In addition, the bank has slowed the growth of noninterest expense.  Overall, the bank's business is heavily dependent on both residential and commercial real estate.  Even with the slowdown in this area, the bank's income before income tax expense for the nine months ended September 30, 2007 of $4,660,000 was only $129,000 less than the income before income tax expense for the nine months ended September 30, 2006.  If it were not for the one time expense due to settlement of litigation associated with customer fraud incurred during the second quarter of 2007, Potomac Bancshares, Inc. would have had record income before income tax expense for the nine months ended September 30, 2007.  Despite a weak economy, Potomac Bancshares, Inc. is performing well and is determined to continue conservative business practices and to work through the downturn which now is expected to last into 2009.</P>
<P>In the interim, the bank is looking toward the future and investing in a number of initiatives to remain competitive and to help improve sales and service.  On the technology side, the bank will debut its electronic bank statement and its &quot;remote capture&quot; business product during the fourth quarter of 2007.  In 2008, construction will begin on an 8,000 square foot addition to the main office which will provide room for continued growth.  And, finally, the bank will soon begin using its recently installed state-of-the-art &quot;Customer Relationship Management System&quot; or &quot;CRM&quot;.</P>
<P>A benefit of a bank with good capitalization and earnings like Potomac Bancshares, Inc. is the ability to continue to pay dividends in spite of a downturn in the economy.  As such, the Board of Directors has approved a dividend of $0.1075 per share to be paid on December 1, 2007 to shareholders of record on November 15, 2007. This increased dividend represents the nineteenth consecutive increase in the dividend since the company began paying them on a quarterly basis in 2003. </P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=696>
<TR><TD WIDTH="57%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=17>
<I><FONT FACE="Arial" SIZE=2><P>Unaudited - dollars in thousands, except per share data</I></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="22%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Three Months Ended</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Nine Months Ended</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="22%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>      <U>September 30</U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          <U>September 30</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Earnings Performance</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Interest Income</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$4,900 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$4,961 </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$14,870 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$14,104 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Interest Expense</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,081 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,926 </U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6,193 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,955 </U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          Net Interest Income</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,819 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,035 </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8,677 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9,149 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Provision For Loan Losses</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">100 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">104 </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">100 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">179 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Non-interest Income</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,185 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">936 </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,222 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,853 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Non-interest Expense</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,442 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,356 </U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7,139 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7,034 </U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          Income Before Income Tax Expense</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,462 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,511 </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,660 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,789 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Income Tax Expense</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">524 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">542 </U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,674 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,696 </U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          Net Income</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$938 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$969 </U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,986 </B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,093 </U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Annualized Return On Average Equity</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14.26%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15.69%</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Annualized Return On Average Assets</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.33%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.44%</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">September 30</U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">December 31</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Balance Sheet Highlights</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Total Assets</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$292,908 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$292,749 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Investment Securities</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">40,386 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">42,706 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Loans, Net</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">223,285 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">227,646 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Deposits And Customer Repurchase Agreements</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">260,969 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">262,070 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Shareholders' Equity</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">28,577 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">26,717 </FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="22%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     <U>September 30</U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>            <U>September 30</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Shareholders' Value <I>(per share)</I></FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Earnings Per Share, Basic</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.27</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.28</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.87</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.89</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Earnings Per Share, Diluted</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.27</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.28</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.87</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.89</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Cash Dividends Declared</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.31</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.28</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Book Value At Period End</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">--</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8.38</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.86</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">September 30</U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">December 31</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Safety and Soundness</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Leverage Ratio</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10.05%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9.34%</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Non-performing Assets As A Percentage Of </FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          Total Assets</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.18%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.05%</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Allowance For Loan Losses As A Percentage Of</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          Period End Loans</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.07%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.05%</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>     Ratio Of Net Charge-Offs During The Period To</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>          Average Loans Outstanding During The Period</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.05%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.03%</FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P>Potomac Bancshares Inc. is a public company trading under the ticker symbol PTBS.OB.  PTBS is the one bank holding company for Bank of Charles Town (BCT) located in Charles Town West Virginia.</P>
<B><P ALIGN="CENTER">SIGNATURES</P>
</B><P ALIGN="CENTER"></P>
<P>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.</P>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<DIR>
<P>Potomac Bancshares, Inc.</P>
<P>&nbsp;</P>
<U><P>/s/Robert F. Baronner, Jr.&#9;</P>
</U><P>Robert F. Baronner, Jr., President and CEO</P>
<P>November 14, 2007</P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "rrd178592.htm", "description": "3RD QTR EARNINGS, 4TH QTR DIV", "secsgml_size_bytes": 34141}]
{"company-data": {"conformed-name": "POTOMAC BANCSHARES INC", "cik": "0000925173", "assigned-sic": "6022", "irs-number": "550732247", "state-of-incorporation": "WV", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-24958", "film-number": "071245771"}, "business-address": {"street1": "111 EAST WASHINGTON ST", "city": "CHARLES TOWN", "state": "WV", "zip": "25414", "phone": "3047258431"}, "mail-address": {"street1": "P O BOX 906", "city": "CHARLES TOWN", "state": "WV", "zip": "25414"}}
Charles Town, WV, Jan
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)
November 14, 2007
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
Registrant's 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:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Section 2 - Financial Information
Item 2.02.	Results of Operations and Financial Condition.
For Immediate Release November 14, 2007
Robert F. Baronner Jr. President and CEO of Potomac Bancshares, Inc. announced the following unaudited results for the third quarter of 2007.
Net income and diluted earnings per share for Potomac Bancshares, Inc. for both the quarter and nine months ended September 30, 2007 declined modestly compared with the results for the same periods ended September 30, 2006.  While the results of operations are disappointing, they clearly depict the underlying strength of Bank of Charles Town, a conservatively managed and well capitalized bank.  The results of operations are still very respectable given the unprecedented decline in the real estate market.  The bank has no exposure to sub-prime loans and does not anticipate any substantive loan losses.
The bank has experienced a slight reduction in net loans outstanding due to reduced demand and continues to see its net interest margin squeezed.  The continued increase in noninterest income has offset some of this reduction.  In addition, the bank has slowed the growth of noninterest expense.  Overall, the bank's business is heavily dependent on both residential and commercial real estate.  Even with the slowdown in this area, the bank's income before income tax expense for the nine months ended September 30, 2007 of $4,660,000 was only $129,000 less than the income before income tax expense for the nine months ended September 30, 2006.  If it were not for the one time expense due to settlement of litigation associated with customer fraud incurred during the second quarter of 2007, Potomac Bancshares, Inc. would have had record income before income tax expense for the nine months ended September 30, 2007.  Despite a weak economy, Potomac Bancshares, Inc. is performing well and is determined to continue conservative business practices and to work through the downturn which now is expected to last into 2009.
In the interim, the bank is looking toward the future and investing in a number of initiatives to remain competitive and to help improve sales and service.  On the technology side, the bank will debut its electronic bank statement and its "remote capture" business product during the fourth quarter of 2007.  In 2008, construction will begin on an 8,000 square foot addition to the main office which will provide room for continued growth.  And, finally, the bank will soon begin using its recently installed state-of-the-art "Customer Relationship Management System" or "CRM".
A benefit of a bank with good capitalization and earnings like Potomac Bancshares, Inc. is the ability to continue to pay dividends in spite of a downturn in the economy.  As such, the Board of Directors has approved a dividend of $0.1075 per share to be paid on December 1, 2007 to shareholders of record on November 15, 2007. This increased dividend represents the nineteenth consecutive increase in the dividend since the company began paying them on a quarterly basis in 2003.
Unaudited - dollars in thousands, except per share data
Three Months Ended
Nine Months Ended
September 30
September 30
2007
2006
2007
2006
Earnings Performance
Interest Income
$4,900
$4,961
$14,870
$14,104
Interest Expense
2,081
1,926
6,193
4,955
Net Interest Income
2,819
3,035
8,677
9,149
Provision For Loan Losses
100
104
100
179
Non-interest Income
1,185
936
3,222
2,853
Non-interest Expense
2,442
2,356
7,139
7,034
Income Before Income Tax Expense
1,462
1,511
4,660
4,789
Income Tax Expense
524
542
1,674
1,696
Net Income
$938
$969
$2,986
$3,093
Annualized Return On Average Equity
--
--
14.26%
15.69%
Annualized Return On Average Assets
--
--
1.33%
1.44%
September 30
December 31
2007
2006
Balance Sheet Highlights
Total Assets
$292,908
$292,749
Investment Securities
40,386
42,706
Loans, Net
223,285
227,646
Deposits And Customer Repurchase Agreements
260,969
262,070
Shareholders' Equity
28,577
26,717
September 30
September 30
2007
2006
2007
2006
Shareholders' Value
(per share)
Earnings Per Share, Basic
0.27
0.28
0.87
0.89
Earnings Per Share, Diluted
0.27
0.28
0.87
0.89
Cash Dividends Declared
--
--
0.31
0.28
Book Value At Period End
--
--
8.38
7.86
September 30
December 31
2007
2006
Safety and Soundness
Leverage Ratio
10.05%
9.34%
Non-performing Assets As A Percentage Of
Total Assets
0.18%
0.05%
Allowance For Loan Losses As A Percentage Of
Period End Loans
1.07%
1.05%
Ratio Of Net Charge-Offs During The Period To
Average Loans Outstanding During The Period
0.05%
0.03%
Potomac Bancshares Inc. is a public company trading under the ticker symbol PTBS.OB.  PTBS is the one bank holding company for Bank of Charles Town (BCT) located in Charles Town West Virginia.
SIGNATURES
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.
Robert F. Baronner, Jr., President and CEO
November 14, 2007