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The National Capital Bank of Washington Reports Second Quarter Results

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The National Capital Bank of Washington Reports Second Quarter Results

PR Newswire

WASHINGTON, July 25, 2018 /PRNewswire/ -- The National Capital Bank of Washington (NCB) reported net income of $533,000, or $1.84 per common share, for the three months ended June 30, 2018, compared to net income of $571,000 or $1.98 per share for the quarter ended June 30, 2017.  For the six months ended June 30, 2018, NCB reported net income of $1,160,000, or $4.01 per share, compared to $1,744,000, or $6.05 for the six months ended June 30, 2017. Excluding a loan loss provision reversal of $1,264,000 in the first six months of 2017, earnings remained stable year over year.  Additionally, with credit quality improvements, non-performing loans to total loans have decreased from 0.25% to 0.15% over the last year.

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

Total assets increased to $436,806,000 at June 30, 2018 compared to $429,752,000 at December 31, 2017 and $420,461,000 at June 30, 2017.  Total loans of $297,505,000 at June 30, 2018 increased $26.5 million or 9.8% year-to-date and were up over $64 million from $233,420,000 the year before as the Bank continued to expand commercial and commercial real estate lending activities.  Total deposits of $383,125,000 at June 30, 2018 were up marginally year-to-date but, were up 4.4% compared to $367,045,000 the year before.  The Bank's net interest margin continued to improve to 3.54% at June 30, 2018 up from 3.26% at year-end 2017 and 3.15% a year ago as a result of growth and a change in the mix of the loan portfolio while maintaining a low cost of funds on deposits.

Total shareholders' equity decreased to $41,857,000 at June 30, 2018 from $43,628,000 at year-end 2017 and $44,290,000 a year ago.  The decrease resulted from adjustments relating to a one-time write-down of deferred tax assets due to the reduction in corporate tax rates in late 2017, a $1 million stock repurchase program completed in June 2018 and a decline in the market value of the Bank's investment portfolio in a rising interest rate environment.  For the six-month period ended June 30, 2018 the return on average assets and return on average equity was 0.53% and 5.43%, respectively. 

Richard B. (Randy) Anderson., Jr. President and Chief Executive Officer said, "Highlights of the second quarter were an acceleration in the pace of loan growth, good progress in developing business at our new branch and business office in the Courthouse area of Arlington and the completion of a $1 million stock repurchase approved by our shareholders.  The costs associated with opening and marketing the new branch and office, outsourcing our stock registrar function and initiating certain operating system improvements were a drag on second quarter earnings but, are anticipated to add to profitability in the long run by opening new business opportunities and improving operating efficiency."  Anderson continued, "Increased competition for deposits became more evident in the second quarter and growing deposits will represent a challenge the remainder of the year.  The addition of the Courthouse branch and the recent legislation allowing CDARs and ICS accounts to serve as core deposits will play an important role in meeting this challenge."

The National Capital Bank of Washington was founded in 1889 and is Washington's Oldest Bank. NCB is headquartered on Capitol Hill with an additional office in Friendship Heights and a new office in the Courthouse neighborhood of Arlington, Virginia, as well as 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.

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:


2018


2017


2018


2017

Interest income


$3,892


$3,451


$7,568


$6,445

Interest expense


238


93


397


211

Net interest income


3,654


3,358


7,171


6,234

Provision (reversal) for loan losses


0


0


0


(1,264)

Net interest income after provision


3,654


3,358


7,171


7,498

Non-interest income


487


621


1,019


1,066

Non-interest expense


3,402


3,039


6,582


5,675

Income before taxes


739


940


1,608


2,889

Income tax provision


206


369


448


1,145

Net income


$533


$571


$1,160


$1,744










Share Data:









Weighted avg no. of shares outstanding


289,163


288,668


289,025


288,485

Period end shares outstanding


286,798


288,777


286,798


288,777










Per Common Share Data:









Net income


$1.84


$1.98


$4.01


$6.05

Closing Stock Price






$220.00


$185.00

Book Value






$145.95


$153.37










Profitability Ratios, Annualized:









Return on average stockholders' equity


5.02%


5.24%


5.43%


8.16%

Return on average total assets


0.49%


0.54%


0.53%


0.83%

Average equity to average total assets


9.78%


10.40%


9.82%


10.21%



















Condensed Balance Sheets:


June 30


December 31


June 30





2018


2017


2017



Assets









     Cash and equivalents


$10,747


$24,791


$16,085



     Securities, available for sale


109,753


117,243


155,602



     Loans, held for sale


0


0


0



     Loans, held in portfolio


297,505


271,037


233,420



     Allowance for loan losses


(3,615)


(3,479)


(3,463)



     Premises and equipment, net


4,297


2,782


2,848



     Bank owned life insurance


11,530


11,395


11,254



     Other assets


6,589


5,983


4,715



Total assets


$436,806


$429,752


$420,461












Liabilities and stockholders' equity









     Deposits


$383,125


$380,651


$367,045



     Securities sold under agreement to repurchase


6,551


4,067


7,941



     FHLB advances


4,000


0


0



     Other liabilities


1,273


1,406


1,185



     Stockholders' equity


41,857


43,628


44,290



Total liabilities and stockholders' equity


$436,806


$429,752


$420,461












Other Data:









Non-performing loans to total loans


0.15%


0.20%


0.25%



Allowance to total loans


1.22%


1.28%


1.48%



Net charge-offs (recoveries) to average loans


-0.05%


-0.01%


-0.01%



Net interest margin for the quarter


3.59%


3.40%


3.37%



Net interest margin for the year


3.54%


3.26%


3.15%



 

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SOURCE The National Capital Bank of Washington

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