The National Capital Bank of Washington Reports First Quarter Earnings and Appointment of Executive Officers
WASHINGTON, May 3, 2016 /PRNewswire/ -- The National Capital Bank of Washington reported net income of $1,819,000, or $6.32 per common share, for the three months ended March 31, 2016, compared to $366,000, or $1.27 per common share, for the three months ended March 31, 2015. The first quarter of 2016 included $1,895,000 of pre-tax provision reversals resulting from the partial recovery of loans charged-off in 2014.
Total assets were $407,845,000 as of March 31, 2016 compared to $436,927,000 as of March 31, 2015. At the end of the first quarter of 2016, total loans were $211,581,000 compared to $237,349 the year before. Total deposits were $357,354,000 at March 31, 2016 compared to $390,774,000. Over the last year, the Bank experienced approximately $6.1 million of commercial loan run-off as it exited from certain commercial business relationships and an additional $21.1 million of run-off in 30 year fixed rate residential mortgage loans as it restructured its balance sheet for future loan growth and diversification.
Total shareholders' equity increased to $40,993,000 at March 31, 2016 from $32,944,000 a year ago. The increase resulted from $5.2 million of recoveries of loans charged-off in 2014 and earnings from operations. At March 31, 2016 the return on average assets and return on average equity was 1.76% and 18.66%, respectively. No cash dividends were declared in the first quarter of 2016.
Additionally, the Board of Directors is pleased to announce the appointment of Thomas A. Barnes as Chairman of the Board and Richard B. "Randy" Anderson, Jr. as President and Chief Executive Officer. Mr. Barnes is former President and CEO of the Cooperative Bank in Roslindale, Massachusetts and prior Deputy Director for Examinations, Supervision, and Consumer Protection at the Office of Thrift Supervision. Mr. Anderson is former Regional President Metro DC for United Bank in Vienna, Virginia and Executive Vice President and Chief Lending Officer of Virginia Commerce Bank in Arlington, Virginia.
The National Capital Bank of Washington is the oldest bank in the District of Columbia having been founded in 1889. The Bank operates from its main office on Capitol Hill and a branch office in Friendship Heights. To learn more about the Bank, please visit www.NationalCapitalBank.com or call 202-546-8000.
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 |
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Financial Highlights |
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(In thousands, except share data) |
Three Months Ended |
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(Unaudited) |
March 31 |
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Condensed Statement of Income: |
2016 |
2015 |
||||
Interest income |
$2,813 |
$2,874 |
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Interest expense |
116 |
137 |
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Net interest income |
2,697 |
2,737 |
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Provision (reversal) for loan losses |
(1,895) |
0 |
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Net interest income after provision |
4,592 |
2,737 |
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Non-interest income |
570 |
422 |
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Non-interest expense |
2,190 |
2,352 |
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Income before taxes |
2,972 |
807 |
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Income tax provision |
1,153 |
441 |
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Net income |
$1,819 |
$366 |
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Share Data: |
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Weighted avg no. of shares outstanding |
287,652 |
287,652 |
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Period end shares outstanding |
287,652 |
287,652 |
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Per Common Share Data: |
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Net income |
$6.32 |
$1.27 |
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Closing Stock Price |
$135.00 |
$299.00 |
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Book Value |
$142.51 |
$117.91 |
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Profitability Ratios, Annualized: |
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Return on average stockholders' equity |
18.66% |
4.32% |
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Return on average total assets |
1.76% |
0.34% |
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Average equity to average total assets |
9.43% |
7.92% |
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Condensed Balance Sheets: |
March 31 |
December 31 |
March 31 |
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2016 |
2015 |
2015 |
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Assets |
||||||
Cash and equivalents |
$20,210 |
$12,367 |
$24,517 |
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Securities, available for sale |
165,451 |
171,699 |
164,406 |
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Loans |
211,581 |
216,005 |
237,349 |
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Allowance for loan losses |
(4,717) |
(4,854) |
(8,738) |
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Premises and equipment, net |
2,311 |
2,320 |
2,361 |
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Bank owned life insurance |
8,542 |
8,491 |
8,327 |
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Other assets |
4,467 |
5,886 |
8,705 |
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Total assets |
$407,845 |
$411,914 |
$436,927 |
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Liabilities and stockholders' equity |
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Deposits |
$357,354 |
$364,310 |
$390,774 |
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Securities sold under agreement to repurchase |
7,803 |
8,473 |
12,208 |
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Other liabilities |
1,695 |
1,217 |
801 |
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Stockholders' equity |
40,993 |
37,914 |
32,944 |
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Total liabilities and stockholders' equity |
$407,845 |
$411,914 |
$436,927 |
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Other Data: |
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Non-performing loans to total loans |
2.02% |
2.11% |
3.34% |
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Allowance to total loans |
2.23% |
2.25% |
3.68% |
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Net charge-offs (recoveries) to average loans |
-0.83% |
-1.79% |
-0.31% |
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Net interest margin for the quarter |
2.78% |
2.59% |
2.69% |
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Net interest margin for the year |
2.78% |
2.72% |
2.69% |
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SOURCE National Capital Bank of Washington
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