The National Capital Bank of Washington Reports Third Quarter Earnings

WASHINGTON, Oct. 26, 2016 /PRNewswire/ -- The National Capital Bank of Washington "NCB" reported net income of $620,000, or $2.15 per common share, for the three months ended September 30, 2016, compared to $3,329,000, or $11.57 per common share, for the three months ended September 30, 2015.  For the nine months ended September 30, 2016, net income was $3,748,000, or $13.03 per common share, compared to $4,478,000, or $15.57 per common share, for the nine months ended September 30, 2015.  The Bank continues to benefit from the $2.7 million worth of loan recoveries received so far in 2016 and $4.1 million during 2015 from loans previously charged-off in 2012 through 2014.

Total assets were $406,456,000 as of September 30, 2016 compared to $416,998,000 as of September 30, 2015.  At the end of the third quarter of 2016, total loans were $210,977,000 compared to $220,361,000 the year before.  The loan decline was the result of $16.8 million run-off of residential mortgages, primarily 30 year fixed rate, partially offset by $11.1 million of loan growth in commercial real estate.  Total deposits were $344,855,000 at September 30, 2016 compared to $367,124,000 the year before.  $10 million of time deposit decline was due to customer concentration risk reductions with the remaining decline from normal account fluctuations predominantly in money market accounts. 

Total shareholder's equity increased to $43,317,000 at September 30, 2016 from $36,385,000 a year ago.  The increase resulted from core earnings and the benefit from $6.0 million of loan recoveries during the last 12 months.  At September 30, 2016 the return on average assets and return on average equity was 2.74% and 27.16%, respectively.  No cash dividends were declared in the third quarter of 2016.

Richard B. "Randy" Anderson, Jr. President and Chief Executive Officer said, "NCB continues to make progress in re-positioning its loan portfolio to take advantage of market opportunities in the commercial sector.  Commercial real estate and commercial real estate construction loans are up $14.9 million from one year ago partially offsetting the intentional run-off of fixed rate residential real estate loans.  However, the Bank continues to have a strategic interest in adding new variable rate residential mortgage loans to the portfolio and deriving fee income from the origination of new fixed rate residential mortgage loans for sale in the secondary market." 

Towards this end, mortgage lending veteran Christopher Reddick joined the Bank in August as Vice President Mortgage Sales Director.  Mr. Reddick has over 23 years of mortgage banking origination and management experience and has been tasked with re-energizing the Bank's residential lending activities. Concurrent with Mr. Reddick's hiring, NCB entered into a strategic partnership with Lender Select Mortgage Group to provide underwriting, closing, compliance and secondary market support.  "We are excited to have Chris join our team and provide the leadership in concert with Lender Select's back office support to meet the residential mortgage needs of our community," Anderson remarked.

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.

SOURCE The National Capital Bank of Washington