National Capital Bank Reports Increased First Quarter Earnings

Investment Portfolio Increases in Value

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The National Capital Bank (NCB) of Washington said they will work with employees to find solutions to financial difficulties during the shutdown, saying "we are dedicated to helping our customers with all their banking needs – especially in times of need."

The National Capital Bank of Washington (NCB) reported net income of $676,000, or $2.37 per common share, for the three months ended March 31, 2019, compared to net income of $629,000 or $2.18 per share for the quarter ended March 31, 2018.  This 7.5% increase in net income is due primarily to continued growth in the Bank’s loan portfolio, funded primarily with strong core deposits.  Non-performing loans to total loans decreased from 0.19% to 0.09% over the last year.

Total assets increased year-over-year to $480,708,000 at March 31, 2019 compared to $432,403,000 at March 31, 2018.  Total loans of $340,745,000 at March 31, 2019 have increased from $279,364,000 the year before as the Bank continued to emphasize commercial, commercial real estate and construction lending programs.  Total deposits also increased to $406,665,000 at March 31, 2019 compared to $380,227,000 the year before.  The Bank’s net interest margin for the quarter increased to 3.62% at March 31, 2019 up from 3.42% a year ago because of continued loan growth and a change in the mix of earning assets toward higher yielding commercial loans.

Total shareholders’ equity increased to $45,412,000 at March 31, 2019 from $42,733,000 a year ago.  The increase resulted from retained earnings for the past twelve months along with an increase in the market value of the Bank’s investment portfolio due to recent declines in longer-term interest rates.  For the quarter ended March 31, 2019, the return on average assets and return on average equity was 0.57% and 6.09%, respectively.

National Capital Bank President and CEO Richard ‘Randy’ Anderson, Jr. stands at the window in his office. Photo: Elizabeth O’Gorek

Richard B. (Randy) Anderson, Jr., President and Chief Executive Officer said, “The first quarter of 2019 was characterized by balanced growth in both loans and deposits and a more favorable economic climate than originally forecast. This growth translated into improved earnings and we believe we are off to a good start in meeting our goals and objectives for the year.”

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., and the Courthouse/Clarendon community in Arlington, Virginia. 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 community.  For more information about NCB, visit www.nationalcapitalbank.com. The Bank trades under the symbol NACB.