National Capital Bank Releases Final 2017 Quarterly Report

Report shows growth in loans, deposits but overall loss

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On January 24th, the National Capital Bank of Washington (NCB) released their final quarterly report for 2017, which covers the last three months of the year. The bank reported a net loss of $(277,000), or $(0.96) per common share, for the three months ended December 31, 2017, compared to net income of $937,000 or $3.25 per share for the quarter ended December 31, 2016.

Part of the reason for the loss is the reduction in corporate tax rates for 2018. A one-time write-down of $880,000 of deferred tax assets is included in that amount.

For the year ended December 31, 2017, NCB reported net income of $1,971,000, or $6.83 per share, compared to $4,685,000, or $16.27 per share for the year ended December 31, 2016.

NCB continues to improve asset quality which resulted in a reversal of loan provision expense in the amount of $1,264,000 for the twelve months of 2017 compared to a $3,662,000 provision reversal for the same period in 2016.  Non-performing loans to total loans have decreased from 1.95% to 0.20% over the last year. Total assets increased year-over-year to $429,752,000 at December 31, 2017 compared to $412,162,000 at December 31, 2016.

Total loans of $271,037,000 at December 31, 2017 increased 29.8% from $208,724,000 the year before as the Bank continued to build and expand its commercial and commercial real estate lending programs.  Of this growth, $16,900,000 occurred during the fourth quarter.

Total deposits grew to $380,651,000 at December 31, 2017, a 5.1% increase over $362,170,000 the year before with $16,985,000 gathered in the fourth quarter.  The Bank’s net interest margin increased to 3.26% at December 31, 2017 up from 2.87% a year ago as a result of the improvements in credit quality, loan growth and a change in the mix of the loan portfolio.

Total shareholders’ equity increased to $43,628,000 at December 31, 2017 from $40,985,000 a year ago.  For the year ended December 31, 2017 the return on average assets and return on average equity was 0.47% and 4.51%, respectively.

Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, “Adjusting for the impact of the one-time deferred tax asset write-down, as well as the loan loss provision reversals and gains on sale of securities, we are excited about the continued progress made during 2017 to improve the core earnings potential of the Bank and position it for greater profitability in 2018.  Net interest income has improved significantly and the lending, business development and support staff are now in place to continue this momentum without any significant additions.”

The National Capital Bank of Washington was founded in 1889 and is Washington’s Oldest Bank. NCB is headquartered on Capitol Hill (316 Pennsylvania Ave. SE) with a second branch located in Friendship Heights (5228 44 St. NW), 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.