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 $1,170,000, or $4.07
per common share, for the three months ended March 31, 2024,
compared to net income of $949,000 or $3.30 per common share, for
the quarter ended March 31, 2023. The earnings improvement was
primarily attributable to the results of productivity improvement
and cost-reduction initiatives that took place throughout 2023.
Total assets increased year-over-year to $708,183,000 on March
31, 2024 compared to $661,365,000 on March 31, 2023. Total loans of
$509,187,000 on March 31, 2024 increased by $12.2 million during
the quarter and have increased by $70.8 million, or 16.1%, from the
year before. Total deposits of $581,762,000 on March 31, 2024,
increased $1.1 million during the quarter and have increased $17.2
million, or 3.0%, from the year before. While the Company has
increased its utilization of borrowings from the FHLB and the
Federal Reserve over the past year to help in meeting loan growth
opportunities, it has 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 3.20% during the first
quarter of 2024 was stable compared with 3.21% in the fourth
quarter of 2023 but was down compared with 3.45% in the first
quarter of 2023. We are encouraged by the stabilization of our net
interest margin in the most recent quarter. 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 over the past several quarters 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.
Total shareholders’ equity increased to $54,053,000 on March 31,
2024 from $49,725,000 a year ago due primarily to the retained
earnings for the past twelve months. For the quarter ended March
31, 2024 the return on average assets and return on average equity
was 0.68% and 8.69%, respectively.
“We are encouraged by our continually improving efficiency
ratio. These results are a direct effort by the entire team to
fully utilize the technology we have and embrace change,” said
Jimmy Olevson, President and Chief Executive Officer of the Bank.
Olevson continued, “We are focused on being the best community bank
in the DC metropolitan area for our clients and employees while
providing increased shareholder return each year.”
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 May 16, 2024. The dividend payout of $190,180.32 on 288,152
shares is payable May 30, 2024. The Board of Directors also
approved a share repurchase program of up to $300,000, allowing for
purchases from time to time, in open market or private transactions
with an expiration date of February 28, 2025.
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
(Unaudited)
March 31
Condensed Statement of Income:
2024
2023
Interest income
$
8,084
$
6,513
Interest expense
2,772
1,214
Net interest income
5,312
5,299
Provision for (recovery of) credit losses
265
0
Net interest income after provision
5,047
5,299
Non-interest income
786
679
Non-interest expense
4,261
4,722
Income before taxes
1,572
1,256
Income tax provision
402
307
Net income
$
1,170
$
949
Share Data: Weighted avg no. of shares outstanding
287,626
287,310
Period end shares outstanding
288,152
287,750
Per Common Share Data: Net income
$
4.07
$
3.30
Closing Stock Price
$
169.34
$
164.00
Book Value
$
187.59
$
172.81
Profitability Ratios, Annualized: Return on average
shareholders' equity
8.69
%
7.83
%
Return on average total assets
0.68
%
0.59
%
Efficiency ratio
69.88
%
78.99
%
Condensed Balance Sheets:
March 31
December 31
March 31
2024
2023
2023
Assets Cash and equivalents
$
41,286
$
43,732
$
40,831
Securities, available for sale
65,179
67,039
83,861
Securities, held to maturity
66,086
67,110
71,240
Loans, held for sale
0
786
0
Loans, held in portfolio
509,187
496,982
438,413
Allowance for credit losses
(5,750
)
(5,450
)
(5,170
)
Premises and equipment, net
6,865
6,939
7,485
Bank owned life insurance
14,484
14,402
14,176
Other assets
10,846
11,511
10,529
Total assets
$
708,183
$
703,051
$
661,365
Liabilities and shareholders' equity Deposits
$
581,762
$
580,649
$
564,558
Securities sold under agreement to repurchase
0
0
10,100
FHLB advances and other borrowings
55,000
52,000
20,000
Subordinated notes, net of issuance cost
13,748
13,734
13,693
Other liabilities
3,620
3,298
3,289
Shareholders' equity
54,053
53,370
49,725
Total liabilities and shareholders' equity
$
708,183
$
703,051
$
661,365
Other Data: Non-performing loans to total loans
0.00
%
0.00
%
0.01
%
Allowance to total loans
1.13
%
1.10
%
1.18
%
Net charge-offs (recoveries) to average loans
0.00
%
0.00
%
0.00
%
Loan-to-deposit ratio
87.52
%
85.59
%
77.66
%
Net interest margin for the quarter
3.20
%
3.21
%
3.45
%
Net interest margin for the year
3.20
%
3.30
%
3.45
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424274472/en/
Randal J. Rabe, EVP, Chief Financial Officer Phone: 202-546-8000
Email: rrabe@nationalcapitalbank.bank