National Capital Bancorp, Inc. (the “Company”) (OTC Pink: NACB),
the holding company for The National Capital Bank of Washington
(“NCB” or the “Bank") reported net income of $1,520,000, or $5.28
per common share, for the three months ended June 30, 2024,
compared to net income of $1,190,000 or $4.13 per common share, for
the quarter ended June 30, 2023. For the six months ended June 30,
2024, the Company reported net income of $2,690,000, or $9.35 per
share, compared to $2,139,000, or $7.44 for the six months ended
June 30, 2023. The earnings improvement was primarily attributable
to the results of productivity improvement and cost-reduction
initiatives that have taken place since early 2023 along with a
rebound in our net interest margin during the second quarter.
Total assets ended the quarter at $715,959,000 on June 30, 2024.
Total loans of $504,385,000 on June 30, 2024 decreased $4.8 million
during the quarter but have increased $39.2 million (8.4%) over the
past twelve months. Total deposits increased $25.9 million during
the quarter to $607,632,000 on June 30, 2024 and have increased
$43.8 million (7.8%) over the past twelve months. The Company has
focused on balanced growth over the past year with deposit growth
providing the funding for new loan opportunities. As a result, the
Company continues to experience a relatively low reliance on
wholesale funding sources and maintains strong levels of available
secured borrowing capacity to meet the financing and cash flow
needs of our client base as well as continue to pursue desirable
new relationship opportunities.
The Company’s net interest margin of 3.27% during the second
quarter of 2024 rebounded compared with 3.20% in the first quarter
of 2024 and was only down slightly compared with 3.30% in the
second quarter of 2023. While the past several quarters had
benefited from the favorable impact of interest rate increases on
variable-rate loans, interest-bearing cash balances and on newly
originated loans, we had experienced compression of our net
interest margin during each quarter of 2023 due to increased
competition for deposits along with some utilization of wholesale
funding sources to enhance our liquidity position and satisfy
client borrowing needs and new loan opportunities. We are
encouraged by the improvement of our net interest margin in the
most recent quarter as our strong deposit growth was deployed in
higher-yielding assets.
Total shareholders’ equity increased to $55,179,000 on June 30,
2024 from $50,422,000 a year ago due primarily to the retained
earnings for the past twelve months. For the six months ended June
30, 2024, the annualized return on average assets and return on
average equity was 0.77% and 9.95%, respectively.
"We are pleased to report a strong quarter with significant
growth in total deposits, demonstrating our customers' continued
trust in our bank," said Bank CEO Jimmy Olevson. "Our efforts to
streamline operations have successfully lowered our efficiency
ratio, and we are encouraged by our overall results. At the same
time, we are mindful of the potential headwinds related to
commercial real estate loans, and the possible challenges that may
arise in the coming months. We continue to closely monitor the
credit profiles within the commercial real estate portfolio as well
as changes in our market area that may impact that segment of our
business. Our culture of dedicated service to our customers served
our bank well during the first half of 2024, and these results
reflect our commitment to delivering strong financial performance
and creating value for our shareholders."
The Company also announced today that its Board of Directors has
declared a dividend of $0.66 per share for shareholders of record
as of August 15, 2024. The dividend payout of $189,932.16 on
287,776 shares is payable August 29, 2024.
In April of 2024, the Board of Directors approved a share
repurchase program of up to $300,000, allowing for purchases from
time to time, in open market or private transactions with a program
expiration date of February 28, 2025. During the quarter ended June
30, 2024, the Company repurchased 300 shares at an average share
price of $175.55.
National Capital Bancorp, Inc. is the holding company for The
National Capital Bank of Washington which 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 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
eBanking, 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.bank.
Forward-Looking Statements
This news release may contain certain forward-looking
statements, such as statements of the Company’s plans, objectives,
expectations, estimates and intentions. Forward-looking statements
may be identified using 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 Company’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 Company to effectively manage its growth and results
of regulatory examinations, among other factors. The foregoing list
of important factors is not exclusive.
National Capital Bancorp, Inc. Financial Highlights
(In thousands, except share data)
Three Months Ended
Six Months Ended (Unaudited)
June 30 June 30
Condensed Statement of Income:
2024
2023
2024
2023
Interest income
$
8,508
$
7,095
$
16,592
$
13,608
Interest expense
2,937
1,885
5,709
3,099
Net interest income
5,571
5,210
10,883
10,509
Provision for (recovery of) credit losses
80
0
345
0
Net interest income after provision
5,491
5,210
10,538
10,509
Non-interest income
829
787
1,615
1,466
Non-interest expense
4,271
4,412
8,532
9,134
Income before taxes
2,049
1,585
3,621
2,841
Income tax provision
529
395
931
702
Net income
$
1,520
$
1,190
$
2,690
$
2,139
Share Data: Weighted avg no. of shares outstanding
287,930
287,750
287,778
287,531
Period end shares outstanding
287,776
287,750
287,776
287,750
Per Common Share Data: Net income
$
5.28
$
4.13
$
9.35
$
7.44
Closing Stock Price
$
175.75
$
175.00
Book Value
$
191.74
$
175.23
Profitability Ratios, Annualized: Return on average
shareholders' equity
11.21
%
9.39
%
9.95
%
8.57
%
Return on average total assets
0.86
%
0.72
%
0.77
%
0.65
%
Efficiency ratio
66.73
%
73.57
%
68.27
%
76.28
%
Condensed Balance Sheets: June 30
December 31 June 30
2024
2023
2023
Assets Cash and equivalents
$
57,231
$
43,732
$
40,215
Securities, available for sale
63,219
67,039
68,972
Securities, held to maturity
64,795
67,110
69,843
Loans, held for sale
0
786
446
Loans, held in portfolio
504,385
496,982
465,151
Allowance for credit losses
(5,885
)
(5,450
)
(5,170
)
Premises and equipment, net
6,788
6,939
7,363
Bank owned life insurance
14,575
14,402
14,249
Other assets
10,851
11,511
12,149
Total assets
$
715,959
$
703,051
$
673,218
Liabilities and shareholders' equity Deposits
$
607,632
$
580,649
$
563,827
Securities sold under agreement to repurchase
0
0
12,250
FHLB advances and other borrowings
35,000
52,000
30,000
Subordinated notes, net of issuance cost
13,761
13,734
13,707
Other liabilities
4,387
3,298
3,012
Shareholders' equity
55,179
53,370
50,422
Total liabilities and shareholders' equity
$
715,959
$
703,051
$
673,218
Other Data: Non-performing loans to total loans
0.00
%
0.00
%
0.00
%
Allowance to total loans
1.17
%
1.10
%
1.11
%
Net charge-offs (recoveries) to average loans
0.00
%
0.00
%
0.00
%
Loan-to-deposit ratio
83.01
%
85.59
%
82.50
%
Net interest margin for the quarter
3.27
%
3.21
%
3.30
%
Net interest margin for the year
3.24
%
3.30
%
3.37
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724411109/en/
Randal J. Rabe, EVP, Chief Financial Officer Phone: 202-546-8000
Email: rrabe@nationalcapitalbank.bank