UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G INFORMATION STATEMENT PURSUANT TO RULES 13d-1 AND 13d-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 7 ) 1 ------ POTOMAC BANCSHARES, INC. ------------------------ NAME OF ISSUER COMMON ------ Title of Class of Securities 737643106 --------- CUSIP Number Check the following box if a fee is being paid with this statement [ ]. (A fee is not required only if the filing person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in item 1; and (2) has no amendment subsequent thereto reporting beneficial owner ship of five percent or less of such class.) (See rule 13d-7). ___________________________________ 1- The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the act but shall be subject to all other provisions of the Act (however, see the Notes). ================================ ================================ CUSIP NO. 737643106 13G Page 1 of 4 Pages ---------- ----- ----- ================================ ================================ ============================================================================== NAMES OF REPORTING PERSONS Bank of Charles Town Trust & Financial Services Dept. 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 55-0118850 ------------------------------------------------------------------------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [_] Shares held by Bank's Trust Department (b) [X] ------------------------------------------------------------------------------ 3 SEC USE ONLY ------------------------------------------------------------------------------ 4 CITIZENSHIP OR PLACE OF ORGANIZATION West Virginia Corporation ------------------------------------------------------------------------------ 5 SOLE VOTING POWER NUMBER OF 1,440 SHARES ----------------------------------------------------------- 6 SHARED VOTING POWER BENEFICIALLY OWNED BY 0.00 ----------------------------------------------------------- EACH 7 SOLE DISPOSITIVE POWER REPORTING 1,440 PERSON ----------------------------------------------------------- 8 SHARED DISPOSITIVE POWER WITH 0.00 ------------------------------------------------------------------------------ 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- ------------------------------------------------------------------------------ 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [_] ------------------------------------------------------------------------------ 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 0% ------------------------------------------------------------------------------ 12 TYPE OF REPORTING PERSON* BK ============================================================================== *SEE INSTRUCTIONS BEFORE FILLING OUT! Page 2 of 4 ITEM 1(a)-NAME OF THE BANK ISSUER: POTOMAC BANCSHARES, INC. (a one-bank holding company) by: BANK OF CHARLES TOWN ITEM 1(b)-ADDRESS OF BANK'S PRINCIPAL EXECUTIVE OFFICES: 111 East Washington Street P. O. Box 906 Charles Town, WV 25414 ITEM 2(a)-NAME OF PERSON FILING: BANK OF CHARLES TOWN Trust and Financial Services Division ITEM 2(b)-ADDRESS OF PRINCIPAL BUSINESS OFFICE: 111 East Washington Street P. O. Drawer 40 Charles Town, WV 25414 ITEM 2(c)-CITIZENSHIP: Not applicable ITEM 2(d)-TITLE OF CLASS OF SECURITIES: Common Stock ITEM 2(e)-CUSIP NUMBER: 737643106 ITEM 3-STATEMENT FILED UNDER SECTION 13d-1(b): Trust and Financial Services Division, Bank of Charles --------------- Town, is a bank as defined in section 3(a)(6) of the Act. ---- Bank of Charles Town is a wholly owned subsidiary of POTOMAC -------------------- BANCSHARES, INC., a one-bank holding company. ITEM 4-OWNERSHIP: (a) No (-0-) shares of POTOMAC BANCSHARES are beneficially owned as of ------------------ December 31, 2001. (b) Percent of class: -0- of 600,000 total = 0.00% (c)(i) Trust department holds Sole power to vote or to direct the vote of 1,440 shares (ii) Trust department holds Shared power to vote or to direct the vote of 0.00 shares (iii) Trust department holds Sole power to dispose or to direct the disposition of 1,440 shares (iv) Trust department holds Shared power to dispose or to direct the disposition of 0.00 shares The Trust Department holds 27,910 shares in accounts in which all power to vote and direct disposition is retained by grantor or beneficiaries; with no power to vote, and no power to direct disposition, vested in the bank as fiduciary. The shares are held in fiduciary and agency accounts by the Trust and Financial Services Division (the Trust Department) for the benefit of grantors and beneficiaries of the accounts owning POTOMAC BANCSHARES stock. No Trust department client, beneficiary, or grantor holds a preferred-right to purchase POTOMAC BANCSHARES stock: The opportunity to purchase accrues and devolves to all present shareholders and non-shareholders equally. Any future receipts of Page 3 of 4 POTOMAC BANCSHARES stock for accounts in the BANK OF CHARLES TOWN, Trust and Financial Services Division will be the result of: 1) shares received upon qualification as executor or administrator of a deceased shareholder's estate, or 2) delivery in kind, or specific and expressed direction to purchase, by the client or grantor. It is the express policy of the Trust and Department not to encourage, recommend, or suggest the purchase of POTOMAC BANCSHARES stock for trust or agency accounts. ITEM 5-OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS: Not applicable ITEM 6-OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON: (AS OF DECEMBER 31, 2001 The Trust and Financial Services Division holds a total of 29,350 shares of POTOMAC BANCSHARES stock. For 27,910 shares, or 4.65% of the class, the right to receive or the power to direct the receipt of dividends from these securities, and the right to receive or the power to direct the receipt of proceeds from the sale of these securities, is vested in the grantors and beneficiaries with no such authority vested in the trust division. For 1,440 shares, or .24% (.0024) of the class, the Trust and Financial Services Division holds sole authority to vote and direct disposition through its fiduciary capacity. For 0.00 shares, or .00% (.0000) of the class, the Trust and Financial Services Division holds shared authority to vote and direct disposition through its fiduciary capacity. No one individual client has such an interest that relates to more than 5% of the class. ITEM 7-IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY: Not applicable ITEM 8-IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP: Not applicable ITEM 9-NOTICE OF DISSOLUTION OF GROUP: Not applicable ITEM 10-CERTIFICATION: By signing below we certify that, to the best of our knowledge and belief, the securities referred to above were acquired in the ordinary course of business and were not acquired for the purpose of and do not have the effect of changing or influencing the control of the issuer of such securities and were not acquired in connection with or as a participant in any transactions having such purpose or effect. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete, and correct. /s/ RFB 2/5/02 ------------------------------------------------ ------------ Robert F. Baronner, President DATE /s/ RLH 2/5/02 ------------------------------------------------------ ------------ Robert L. Hersey, Vice President and Trust Officer DATE Page 4 of 4 Holders AS OF A Specific Date * * * POTOMAC BANCSHARES, INC. * * * AS OF 12/31/01 Ticker Symbol : PTBS Cusip Number : 737643106 Account # Account Name Shares ================================================================================ 12-00112 *MARY BOGARDUS PORTERFIELD COMMITTEE 1,440. 20-01929 CAROLYN B. MARSHALL TRUST 2,880. 20-02130 JAMES A. GRANTHAM TRUST 100. 22-02189 EDWARD L. MCDONALD, JR. , FAMILY TRUST 234. 25-00270 ZION CHURCH G/F TRUST 320. 25-01820 OLD CHARLES TOWN LIBRARY TRUST 2,000. 30-01206 P. GERALD & JEAN F. DORSEY 184. 30-01500 BARBARA A. WHITE AGENCY. 48. 30-01911 E. CHARLES STOCKMAR AGENCY 2,090. 31-02086 JUNE E. HUYETT AGENCY 8,600. 31-02154 GEORGE M. WILLIAMS AGENCY 80. 31-02302 STANLEY & SUSAN SOWERS 100. 31-02203 FRANK H. FISCHER 300. 32-02134 CHARLES E BECKER AGENCY 223. 32-02208 ANN C. PORTERFIELD TRUSTEE,AGENCY 8,096. 32-02293 STEVE AND NANCY SMITH 34. 40-02301 RONERT F. BARONNER, IRA 270. 41-02153 ROBERT L. HERSEY IRA 405. 44-02149 NICHOLS & SKINNER, L.C. P/S 1,946. ------ TOTAL SHARES HELD 29,350. ======= TOTAL PTBS SHARES OUTSTANDING: 600,000 SHARES HELD PER CENT OF CLASS ----------- ----------------- *FULL VOTING AND DISPOSITION AUTHORITY HELD BY BANK AS FIDUCIARY: SHARES NOT VOTED BY BANK 1,440 .24% or .0024 **VOTING AND DISPOSITION AUTHORITY SHARED WITH CO-FIDUCIARY: SHARES NOT VOTED BY BANK 0.00 .00% or .0000 VOTING AND DISPOSITION AUTHORITY HELD BY OWNER/GRANTOR 27,910 4.65% or .0465 --------- ---------------- TOTAL SHARES 29,350 4.89% or .0489 ========= =================