National Capital Bancorp, Inc. Reports Third Quarter Earnings, Quarterly Cash Dividend and Four-For-One Stock Split

Rhea-AI Summary

National Capital Bancorp (OTC Pink: NACB) reported Q3 2024 net income of $1,726,000 ($6.00 per share), up from $1,136,000 ($3.95 per share) in Q3 2023. The company's total assets reached $718,249,000, with loans increasing by $42.2 million (8.8%) year-over-year to $519,315,000. Total deposits grew by $44.4 million (7.9%) to $605,345,000. The Board declared a $0.66 per share dividend and announced a four-for-one stock split for shareholders of record as of November 12, 2024. The company maintained a stable net interest margin of 3.27% in Q3 2024.

Positive

• Net income increased 52% YoY to $1,726,000 in Q3 2024
• Loan portfolio grew 8.8% YoY to $519,315,000
• Deposits increased 7.9% YoY to $605,345,000
• Stable net interest margin at 3.27%
• Return on equity of 10.68% for the first nine months of 2024
• Shareholders' equity increased to $58,606,000 from $49,542,000 YoY

Negative

• Quarterly deposits decreased by $2.3 million

WASHINGTON--(BUSINESS WIRE)-- 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 $1,726,000, or $6.00 per common share, for the three months ended September 30, 2024, compared to net income of $1,136,000, or $3.95 per common share, for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company reported net income of $4,416,000, or $15.35 per common share, compared to $3,275,000, or $11.39 per common share, for the nine months ended September 30, 2023. The earnings improvement was primarily attributable to the results of productivity improvement and cost-reduction initiatives that have taken place since early 2023 along with higher net interest income driven by continued growth in average earning assets.

Total assets ended the quarter at $718,249,000 on September 30, 2024. Total loans of $519,315,000 on September 30, 2024 reflected an increase of $14.9 million during the quarter and an increase of $42.2 million (8.8%) over the past twelve months. Total deposits decreased $2.3 million during the quarter to $605,345,000 on September 30, 2024 but have increased $44.4 million (7.9%) over the past twelve months. The Company has focused on balanced growth over the past year with deposit growth providing the funding for new loan opportunities. As a result, the Company continues to experience 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 3.27% during the third quarter of 2024 was stable compared with 3.27% in the second quarter of 2024 and was up slightly compared with 3.23% in the third quarter of 2023. Our strong mix of core deposits has allowed the Company to maintain a more stable net interest margin during the significant rate increase cycle experienced since early 2022.

Total shareholders’ equity increased to $58,606,000 on September 30, 2024 from $49,542,000 a year ago due primarily to the retained earnings for the past twelve months along with the change in market valuation of the investment portfolio. For the nine months ended September 30, 2024, the annualized return on average assets and return on average equity was 0.83% and 10.68%, respectively.

“Our strong earnings results this quarter are testament to our balanced approach to loan and deposit growth, complemented by our continued focus on generating non-interest income,” said Bank CEO Jimmy Olevson. Olevson continued “While we recognize there are economic challenges ahead, we are pleased to see continued improvement in our efficiency ratio, which reflects the dedication and hard work of our outstanding team. Their commitment to excellence continues to drive our success and deliver increasing value to our shareholders.”

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 November 12, 2024. The dividend payout of $189,932.16 on 287,776 shares is payable November 26, 2024.

In addition, the Company also announced that its Board of Directors has declared a four-for-one stock split for shareholders of record as of November 12, 2024 with an effective date of November 26, 2024. The stock split will be distributed in the form of a stock dividend, which will result in the issuance of three new shares for each outstanding share of the Company’s common stock. Trading is expected to begin on a post-stock split adjusted basis at market open on November 27, 2024. The additional shares will be issued in book-entry form.

“We are excited to announce approval of the four-for-one stock split, which we believe will make investment in our stock more affordable and attractive to a broader group of investors,” said Bank CEO Jimmy Olevson.

In April of 2024, the Board of Directors approved a share repurchase program of up to $300,000, allowing for purchases from time to time, in open market or private transactions with a program expiration date of February 28, 2025. During the quarter ended September 30, 2024, the Company did not make any share repurchases.

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
(Dollars in thousands, except share data)		Three Months Ended						Nine Months Ended
(Unaudited)		September 30						September 30
Condensed Statement of Income:		2024			2023			2024			2023
Interest income		$8,846			$7,219			$25,438			$20,827
Interest expense		3,098			2,092			8,807			5,191
Net interest income		5,748			5,127			16,631			15,636
Provision for (recovery of) credit losses		125			0			470			0
Net interest income after provision		5,623			5,127			16,161			15,636
Non-interest income		795			734			2,410			2,200
Non-interest expense		4,088			4,349			12,620			13,483
Income before taxes		2,330			1,512			5,951			4,353
Income tax provision		604			376			1,535			1,078
Net income		$1,726			$1,136			$4,416			$3,275
Per Common Share Data:
Net income		$6.00			$3.95			$15.35			$11.39
Closing Stock Price								$190.00			$155.00
Book Value								$203.65			$172.17
Profitability Ratios, Annualized:
Return on average shareholders' equity		12.05	%		8.95	%		10.68	%		8.70	%
Return on average total assets		0.94	%		0.69	%		0.83	%		0.67	%
Efficiency ratio		62.48	%		74.20	%		66.28	%		75.59	%
Condensed Balance Sheets:		September 30			December 31			September 30
		2024			2023			2023
Assets
Cash and equivalents		$45,829			$43,732			$42,317
Securities, available for sale		63,554			67,039			64,621
Securities, held to maturity		64,092			67,110			68,316
Loans, held for sale		0			786			638
Loans, held in portfolio		519,315			496,982			477,119
Allowance for credit losses		(6,075	)		(5,450	)		(5,170	)
Premises and equipment, net		6,732			6,939			7,227
Bank owned life insurance		14,666			14,402			14,324
Other assets		10,136			11,511			12,610
Total assets		$718,249			$703,051			$682,002
Liabilities and shareholders' equity
Deposits		$605,345			$580,649			$560,930
Securities sold under agreement to repurchase		0			0			4,281
FHLB advances and other borrowings		35,000			52,000			50,000
Subordinated notes, net of issuance cost		13,775			13,734			13,720
Other liabilities		5,523			3,298			3,529
Shareholders' equity		58,606			53,370			49,542
Total liabilities and shareholders' equity		$718,249			$703,051			$682,002
Other Data:
Non-performing loans to total loans		0.00	%		0.00	%		0.00	%
Allowance to total loans		1.17	%		1.10	%		1.08	%
Net charge-offs (recoveries) to average loans		0.00	%		0.00	%		0.00	%
Loan-to-deposit ratio		85.79	%		85.59	%		85.06	%
Net interest margin for the quarter		3.27	%		3.21	%		3.23	%
Net interest margin for the year		3.25	%		3.30	%		3.33	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023080694/en/

Randal J. Rabe, EVP, Chief Financial Officer

Phone: 202-546-8000

Email: rrabe@nationalcapitalbank.bank

Source: National Capital Bancorp, Inc.

FAQ

What was National Capital Bancorp's (NACB) Q3 2024 earnings per share?

National Capital Bancorp reported earnings of $6.00 per share for Q3 2024, compared to $3.95 per share in Q3 2023.

When will NACB's four-for-one stock split take effect?

The stock split will take effect on November 26, 2024, with trading on a post-split basis beginning November 27, 2024.

What is the dividend amount and payment date for NACB's Q3 2024?

NACB declared a dividend of $0.66 per share, payable on November 26, 2024, to shareholders of record as of November 12, 2024.

What was NACB's total loan growth in Q3 2024?

NACB's total loans increased by $14.9 million during Q3 2024 and $42.2 million (8.8%) over the past twelve months.