The National Capital Bank of Washington Reports Fourth Quarter Earnings

WASHINGTON, Jan. 30, 2019 /PRNewswire/ -- The National Capital Bank of Washington (NCB) reported net income of $814,000, or $2.86 per common share, for the three months ended December 31, 2018, compared to a net loss of $(277,000) or $(0.96) per share for the quarter ended December 31, 2017.  Included in the prior year net loss was a one-time write-down of $880,000 of deferred tax assets due to the change in corporate tax rates for 2018.  For the year ended December 31, 2018, NCB reported net income of $2,647,000, or $9.23 per share, compared to $1,971,000, or $6.83 for the year ended December 31, 2017. In addition to the deferred tax asset write-down, the results for 2017 included a reversal of loan provision expense in the amount of $1,264,000.  Non-performing loans to total loans decreased from 0.20% to 0.16% over the last year.

Total assets increased year-over-year to $466,749,000 at December 31, 2018 compared to $429,752,000 at December 31, 2017.  Total loans of $330,851,000 at December 31, 2018 have increased from $271,037,000 the year before as the Bank continued to emphasize commercial, commercial real estate and construction lending programs.  Total deposits also increased to $396,144,000 at December 31, 2018 compared to $380,651,000 the year before.  The Bank's net interest margin for the year increased to 3.57% at December 31, 2018 up from 3.26% a year ago as a result of continued loan growth and a change in the mix of earning assets toward higher yielding commercial loans.

Total shareholders' equity increased slightly to $43,738,000 at December 31, 2018 from $43,628,000 a year ago.  The increase resulted from retained earnings for the current year substantially offset by a $1 million stock repurchase program completed in June 2018 along with a continued decline in the market value of the Bank's investment portfolio in the past year's rising interest rate environment.  For the year ended December 31, 2018 the return on average assets and return on average equity was 0.60% and 6.28%, respectively. 

Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, "We were pleased to finish 2018 on a strong note with good growth in loans and deposits and a 21% increase in earnings over the third quarter as our net interest margin continued to improve and we experienced the benefit of one-time tax credits relating to energy saving improvements initiated during the year.  Overall, 2018 was a watershed year as the Bank opened its third branch in the Courthouse area of Arlington, Virginia, the first branch outside of the District in our 129-year history.  Additionally, we continued to make excellent progress in upgrading the Bank's technology, processes and procedures to improve ongoing operating efficiency.  This should benefit the Bank in 2019, a year which may prove challenging in regard to economic and political uncertainties."    

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 most recently 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.

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.

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SOURCE The National Capital Bank of Washington