NATIONAL CAPITAL BANCORP, INC. 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.
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% | |||||
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SOURCE The National Capital Bank of Washington
