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The National Capital Bank of Washington Reports Second Quarter Results

WASHINGTON, July 24, 2019 /PRNewswire/ -- The National Capital Bank of Washington (NCB) reported net income of $646,000, or $2.26 per common share, for the three months ended June 30, 2019, compared to net income of $533,000 or $1.84 per share for the quarter ended June 30, 2018.  For the six months ended June 30, 2019, NCB reported net income of $1,322,000, or $4.64 per share, compared to $1,160,000, or $4.01 for the six months ended June 30, 2018. This 14.0% increase in year-to-date net income is due primarily to continued growth in the Bank's loan portfolio and an improved asset mix.  Credit quality continued to be strong as non-performing loans to total loans decreased from 0.15% to 0.08% over the last year.

National Capital Bank of Washington (PRNewsfoto/The National Capital Bank of Wa)

Total assets increased to $485,477,000 at June 30, 2019 compared to $466,589,000 at December 31, 2018 and $436,806,000 at June 30, 2018.  Total loans of $351,716,000 at June 30, 2019 increased $20.9 million or 6.3% year-to-date and were up over $54 million from $297,505,000 the year before as the Bank continued to expand its commercial and commercial real estate lending activities.  Total deposits of $408,355,000 at June 30, 2019 were up 3.1% year-to-date and were up 6.6% compared to $383,125,000 the year before.  The Bank's net interest margin continued to improve to 3.64% at June 30, 2018 up from 3.55% at year-end 2018 and 3.54% a year ago because of growth and a change in the mix of the loan portfolio while maintaining a relatively low cost of deposits in an increasingly competitive rate environment. 

Total shareholders' equity increased to $47,361,000 at June 30, 2019 from $43,738,000 at year-end 2018 and $41,857,000 a year ago.  Both the year-to-date increase and the year-over-year increase resulted from retained earnings along with an increase in the market value of the Bank's investment portfolio due to declines in longer-term interest rates. For the six-month period ended June 30, 2019 the return on average assets and return on average equity was 0.55% and 5.85%, respectively. 

Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, "Second quarter results reflect continued progress in executing our strategic plan of improved profitability, steady balance sheet growth and enhanced product and service offerings through better technology and an emphasis on delivering a quality banking experience." Anderson continued, "In June, we were excited to partner with the Fox Hill senior living community to establish a restricted-access branch on their Bethesda, Maryland campus. We have been well received by Fox Hill's owners and residents and anticipate the office will be an asset in achieving deposit growth goals."

The National Capital Bank of Washington was founded in 1889 and is Washington's Oldest Bank. NCB is headquartered on Capitol Hill with offices in the Friendship Heights community in Northwest D.C., the Courthouse/Clarendon community in Arlington, Virginia and most recently in the Fox Hill senior living community of Bethesda, Maryland. NCB also operates residential mortgage and commercial lending offices and a wealth management services division. NCB product and service offerings include personal and business deposit accounts, robust online and mobile banking, sophisticated treasury management solutions, remote deposit capture and merchant processing – all delivered with top-rated personal service. 

NCB is well-positioned to serve all the banking needs of those in our communities.  For more information about NCB, visit www.nationalcapitalbank.com. The Bank trades under the symbol NACB.

Forward Looking Statements

This news release may contain certain forward-looking statements, such as statements of the Bank's plans, objectives, expectations, estimates and intentions.  Forward-looking statements may be identified by the use of words such as "expects," "subject," "will," "intends," "will be" or "would," These statements are subject to change based on various important factors (some of which are beyond the Bank's control) and actual results may differ materially.  Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management's analysis of factors only as of the date of which they are given).  These factors include general economic conditions, trends in interest rates, the ability of the Bank to effectively manage its growth and results of regulatory examinations, among other factors.  The foregoing list of important factors is not exclusive.

 

The National Capital Bank of Washington

Financial Highlights










(In thousands, except share data)


Three Months Ended


Six Months Ended

(Unaudited)


June 30


June 30










Condensed Statement of Income:


2019


2018


2019


2018

Interest income


$4,869


$3,892


$9,459


$7,568

Interest expense


674


238


1,221


397

Net interest income


4,195


3,654


8,238


7,171

Provision (reversal) for loan losses


0


0


91


0

Net interest income after provision


4,195


3,654


8,147


7,171

Non-interest income


457


487


880


1,019

Non-interest expense


3,783


3,402


7,251


6,582

Income before taxes


869


739


1,776


1,608

Income tax provision


223


206


454


448

Net income


$646


$533


$1,322


$1,160










Share Data:









Weighted avg no. of shares outstanding


285,534


289,163


285,154


289,025

Period end shares outstanding


285,682


286,798


285,682


286,798










Per Common Share Data:









Net income


$2.26


$1.84


$4.64


$4.01

Closing Stock Price






$210.00


$220.00

Book Value






$165.78


$145.95










Profitability Ratios, Annualized:









Return on average stockholders' equity


5.62%


5.02%


5.85%


5.43%

Return on average total assets


0.53%


0.49%


0.55%


0.53%

Average equity to average total assets


9.51%


9.78%


9.40%


9.82%



















Condensed Balance Sheets:


June 30


December 31


June 30





2019


2018


2018



Assets









     Cash and equivalents


$12,863


$14,385


$10,747



     Securities, available for sale


102,071


103,112


109,753



     Loans, held for sale


742


0


0



     Loans, held in portfolio


351,716


330,851


297,505



     Allowance for loan losses


(3,917)


(3,827)


(3,615)



     Premises and equipment, net


5,395


4,784


4,297



     Bank owned life insurance


11,797


11,668


11,530



     Other assets


4,811


5,617


6,589



Total assets


$485,477


$466,589


$436,806












Liabilities and stockholders' equity









     Deposits


$408,355


$396,144


$383,125



     Securities sold under agreement to repurchase


6,985


4,611


6,551



     FHLB advances


20,000


20,000


4,000



     Other liabilities


2,777


2,096


1,273



     Stockholders' equity


47,361


43,738


41,857



Total liabilities and stockholders' equity


$485,477


$466,589


$436,806












Other Data:









Non-performing loans to total loans


0.08%


0.16%


0.15%



Allowance to total loans


1.11%


1.16%


1.22%



Net charge-offs (recoveries) to average loans


0.00%


-0.05%


-0.05%



Net interest margin for the quarter


3.66%


3.61%


3.59%



Net interest margin for the year


3.64%


3.55%


3.54%




 

Cision

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