WASHINGTON, Oct. 23, 2019 /PRNewswire/ -- The National Capital Bank of Washington (NCB) reported net income of $735,000 or $2.57 per common share, for the three months ended September 30, 2019, compared to net income of $674,000 or $2.35 per share for the quarter ended September 30, 2018. For the nine months ended September 30, 2019, NCB reported net income of $2,057,000 or $7.21 per share, compared to $1,833,000 or $6.34 for the nine months ended September 30, 2018. This 12.2% increase in year-to-date net income is due primarily to continued growth in the Bank's loan portfolio and an improved asset mix. Credit quality continued to be strong as non-performing loans to total loans decreased from 0.14% to 0.07% over the last year.
The Bank achieved a growth milestone as total assets increased to $514,286,000 at September 30, 2019 compared to $466,589,000 at December 31, 2018 and $450,334,000 at September 30, 2018. Total loans of $357,869,000 at September 30, 2019 increased 8.2% year-to-date and were up 11.9% compared to $319,927,000 the year before. Total deposits of $436,834,000 at September 30, 2019 were up 10.3% year-to-date and were up 14.1% compared to $382,720,000 the year before. The increase is partially due to the successful launch of the Bank's new Fox Hill branch opened in June in Bethesda, Maryland. The Bank's strong net interest margin came under pressure during the quarter as a result of the recent decreases in interest rates. Net interest margin decreased from 3.66% in the second quarter of 2019 to 3.42% in the third quarter of 2019. Year-to-date 2019, net interest margin of 3.56% was comparable to full-year 2018 net interest margin of 3.55%.
Total shareholders' equity increased to $48,794,000 at September 30, 2019 from $43,738,000 at year-end 2018 and $42,019,000 a year ago. Both the year-to-date increase and the year-over-year increase resulted from retained earnings along with an increase in the market value of the Bank's investment portfolio due to declines in longer-term interest rates. For the nine-month period ended September 30, 2019 the return on average assets and return on average equity was 0.56% and 5.94%, respectively.
Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, "Highlights of the third quarter included passing the half billion dollar mark in assets and our solid progress in growing deposits at a time of year when we have historically seen them decline with the Federal fiscal year. This represented a great way to celebrate the Bank's 130th year in business." Anderson continued, "2019 has been challenging with a different economic climate than originally forecasted, bringing declining interest rates and market headwinds. However, overall we remain pleased with the Bank's momentum and look forward to finishing out the year on a positive note in regard to growth and earnings."
NCB also announced today that its Board of Directors has declared a dividend of $.55 per share for shareholders of record as of November 15, 2019. The dividend payout of $157,125.10 on 285,682 shares is payable November 29, 2019.
The National Capital Bank of Washington 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 most recently in 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 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 communities. For more information about NCB, visit www.nationalcapitalbank.com. The Bank trades under the symbol NACB.
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.