The National Capital Bank of Washington Reports Second Quarter Earnings

WASHINGTON, July 26, 2017

Total assets increased year-over-year to $420,461,000 at June 30, 2017 compared to $409,193,000 at June 30, 2016.  Total loans of $233,420,000 at June 30, 2017 have increased from $213,559,000 from the year before as the Bank started new commercial and commercial real estate lending programs.  Total deposits also increased to $367,045,000 at June 30, 2017 compared to $353,916,000 the year before.  The Bank's net interest margin has also increased to 3.15% at June 30, 2017 up from 2.81% a year ago as a result of improvements in credit quality and growth and change in the mix of the lending portfolio.

Total shareholders' equity increased to $44,290,000 at June 30, 2017 from $42,614,000 a year ago.  The increase resulted from core earnings and loan provision reversals during the last 12 months, partially offset by the increase in unrealized losses on investment securities, available for sale, from market interest rate increases.  For the six months ended June 30, 2017 the return on average assets and return on average equity was 0.83% and 8.16%, respectively.  NCB was pleased to announce a $0.50 per share cash dividend in the second quarter of 2017.

Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, "It was encouraging to see our business development efforts in the fourth quarter of 2016 and first quarter of this year start to bear fruit with loan volume increasing $17.4 million in the second quarter alone.  We anticipate this progress will continue with the addition of Kathryn Speakman, a DC banking veteran and Richard Sobonya, our new construction lending director to the commercial lending team during the quarter."

The National Capital Bank of Washington was founded in 1889 and is Washington's Oldest Bank. NCB is headquartered on Capitol Hill with a second branch located in Friendship Heights, as well as a residential mortgage office and a wealth management services office. The Bank trades under the symbol NACB.  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 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.