National Capital Bancorp, Inc. Reports Third Quarter Earnings

Rhea-AI Summary

National Capital Bancorp, Inc. (OTC Pink: NACB) announced a net income of $1,204,000 ($4.20 per share) for Q3 2021, up from $1,050,000 ($3.67 per share) in Q3 2020. Year-to-date, net income reached $3,323,000 ($11.61 per share), compared to $1,645,000 ($5.75) last year. Total assets rose to $645,131,000, while total loans decreased by $33.1 million to $432,514,000. Despite a decline in net interest margin to 3.14%, shareholders will receive a $0.55 dividend per share on November 30, 2021.

Positive

• Net income increased by 14.6% year-over-year for Q3 2021.
• Year-to-date profits doubled compared to the previous year.
• Total assets grew from $592,501,000 to $645,131,000 YoY.
• Shareholder equity rose to $54,573,000 from $52,398,000 year-over-year.
• A dividend of $0.55 per share declared for November 30, 2021.

Negative

• Total loans decreased by $33.1 million during Q3 2021.
• Net interest margin declined from 3.35% in Q3 2020 to 3.14% in Q3 2021.
• Total deposits fell by $4.0 million during the quarter.

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 $1,204,000, or $4.20 per common share, for the three months ended September 30, 2021, compared to net income of $1,050,000 or $3.67 per common share, for the quarter ended September 30, 2020. For the nine months ended September 30, 2021, the Company reported net income of $3,323,000, or $11.61 per share, compared to $1,645,000, or $5.75 for the nine months ended September 30, 2020. The prior year-to-date results included a $1.7 million build-up in the Bank’s allowance for loan losses in an aggressive response to the uncertain economic and other factors relating to the COVID-19 pandemic but were partially aided by a $0.6 million gain on sale of securities during the third quarter of 2020.

Total assets increased year-over-year to $645,131,000 on September 30, 2021 compared to $592,501,000 on September 30, 2020. Total loans of $432,514,000 on September 30, 2021 decreased by $33.1 million during the quarter and have decreased slightly from $439,852,000 the year before. Total deposits decreased during the quarter by $4.0 million to $567,724,000 on September 30, 2021 but have increased from $508,309,000 the year before. The Company has been an active participant in PPP lending which resulted in new loans exceeding $45 million under the 2021 program and totaling over $108 million overall when combined with the 2020 program. PPP loan forgiveness received during the third quarter of 2021 accounted for the overall decline in loans for the quarter. The remaining combined outstanding balance was $35 million on September 30, 2021, compared with a balance of $65 million and $63 million on June 30, 2021 and September 30, 2020, respectively. The Company has collected $3.9 million of processing fees on the PPP loans, which were deferred and are being recognized in income over the life of the loans. Of these fees $611,000 was recognized in interest income during the third quarter of 2021 and $1,665,000 for the first nine months of 2021 leaving remaining deferred fees of $1.3 million on September 30, 2021. The Company’s net interest margin declined to 3.14% during the third quarter of 2021 compared to 3.33% in the second quarter of 2021 and 3.35% in third quarter of 2020. Much like the banking industry as a whole, the Bank is carrying a higher proportion of earning assets in lower yielding securities as loan demand has not kept pace with deposit growth.

Total shareholders’ equity increased to $54,573,000 on September 30, 2021 from $52,398,000 a year ago. The increase resulted primarily from retained earnings for the past twelve months. For the nine-month period ended September 30, 2021 the return on average assets and return on average equity was 0.69% and 8.19%, respectively.

Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, “We remain pleased with our earnings progress year-to-date and acknowledge the contribution fees from our PPP lending activities have made. However, even more satisfying has been the number of new meaningful banking relationships we were able to develop from our PPP efforts.” Anderson continued “We believe these new customers and their positive experience with the Bank will represent strong ambassadors for our business development efforts the remainder of the year and going into 2022.”

The Company also announced today that its Board of Directors has declared a dividend of $0.55 per share for shareholders of record as of November 15, 2021. The dividend payout of $157,551.35 on 286,457 shares is payable November 30, 2021.

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.com.

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
(In thousands, except share data)		Three Months Ended				Nine Months Ended
(Unaudited)		September 30				September 30
Condensed Statement of Income:		2021		2020		2021		2020
Interest income		$5,347		$5,071		$15,905		$14,989
Interest expense		291		305		741		1,384
Net interest income		5,056		4,765		15,164		13,605
Provision for loan losses		0		452		197		1,764
Net interest income after provision		5,056		4,313		14,967		11,841
Non-interest income		651		1,110		1,975		2,095
Non-interest expense		4,109		4,014		12,542		11,772
Income before taxes		1,598		1,410		4,400		2,164
Income tax provision		394		359		1,077		519
Net income		$1,204		$1,050		$3,323		$1,645
Share Data:
Weighted avg no. of shares outstanding		286,457		286,057		286,284		285,979
Period end shares outstanding		286,457		286,057		286,457		286,057
Per Common Share Data:
Net income		$4.20		$3.67		$11.61		$5.75
Closing Stock Price						$215.00		$182.45
Book Value						$190.51		$183.17
Profitability Ratios, Annualized:
Return on average stockholders' equity		8.75%		7.99%		8.19%		4.27%
Return on average total assets		0.73%		0.72%		0.69%		0.38%
Average equity to average total assets		8.33%		8.98%		8.41%		9.01%
Condensed Balance Sheets:		September 30		December 31		September 30
		2021		2020		2020
Assets
Cash and equivalents		$29,821		$31,009		$24,956
Securities, available for sale		161,667		122,130		106,670
Loans, held for sale		958		1,444		3,366
Loans, held in portfolio		432,514		440,819		439,852
Allowance for loan losses		(6,282)		(6,111)		(5,792)
Premises and equipment, net		8,473		8,558		5,964
Bank owned life insurance		12,342		12,174		12,113
Other assets		5,638		5,271		5,372
Total assets		$645,131		$615,294		$592,501
Liabilities and stockholders' equity
Deposits		$567,724		$532,444		$508,309
Securities sold under agreement to repurchase		6,257		4,782		5,367
FHLB advances		0		0		0
Paycheck Protection Program Liquidity Facility		0		20,795		23,972
Subordinated notes, net of issuance cost		13,610		0		0
Other liabilities		2,967		3,825		2,455
Stockholders' equity		54,573		53,449		52,398
Total liabilities and stockholders' equity		$645,131		$615,294		$592,501
Other Data:
Non-performing loans to total loans (1)		0.29%		0.32%		0.03%
Allowance to total loans		1.45%		1.39%		1.32%
Net charge-offs (recoveries) to average loans		0.01%		0.02%		0.02%
Net interest margin for the quarter		3.14%		3.26%		3.35%
Net interest margin for the year		3.26%		3.29%		3.30%
(1) NPL's exclude accruing TDR's

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006087/en/

Richard B. Anderson, Jr., President & CEO or

Randal J. Rabe, EVP, Chief Financial Officer

Phone: 202-546-8000

Email: randy.anderson@ncbwash.com or

rrabe@ncbwash.com

Source: National Capital Bancorp, Inc.

FAQ

What was National Capital Bancorp's net income for Q3 2021?

National Capital Bancorp reported a net income of $1,204,000 for Q3 2021.

How much did NACB earn per share in the latest quarter?

NACB earned $4.20 per share in Q3 2021.

What is the total asset value reported by NACB?

As of September 30, 2021, NACB reported total assets of $645,131,000.

Did NACB declare a dividend in November 2021?

Yes, NACB declared a dividend of $0.55 per share payable on November 30, 2021.

What was the trend in NACB's total loans in Q3 2021?

Total loans decreased by $33.1 million during Q3 2021.