The National Capital Bank of Washington Reports Fourth Quarter Earnings

WASHINGTON, Jan. 30, 2019

Total assets increased year-over-year to $466,749,000 at December 31, 2018 compared to $429,752,000 at December 31, 2017.  Total loans of $330,851,000 at December 31, 2018 have increased from $271,037,000 the year before as the Bank continued to emphasize commercial, commercial real estate and construction lending programs.  Total deposits also increased to $396,144,000 at December 31, 2018 compared to $380,651,000 the year before.  The Bank's net interest margin for the year increased to 3.57% at December 31, 2018 up from 3.26% a year ago as a result of continued loan growth and a change in the mix of earning assets toward higher yielding commercial loans.

Total shareholders' equity increased slightly to $43,738,000 at December 31, 2018 from $43,628,000 a year ago.  The increase resulted from retained earnings for the current year substantially offset by a $1 million stock repurchase program completed in June 2018 along with a continued decline in the market value of the Bank's investment portfolio in the past year's rising interest rate environment.  For the year ended December 31, 2018 the return on average assets and return on average equity was 0.60% and 6.28%, respectively. 

Richard B. (Randy) Anderson, Jr. President and Chief Executive Officer said, "We were pleased to finish 2018 on a strong note with good growth in loans and deposits and a 21% increase in earnings over the third quarter as our net interest margin continued to improve and we experienced the benefit of one-time tax credits relating to energy saving improvements initiated during the year.  Overall, 2018 was a watershed year as the Bank opened its third branch in the Courthouse area of Arlington, Virginia, the first branch outside of the District in our 129-year history.  Additionally, we continued to make excellent progress in upgrading the Bank's technology, processes and procedures to improve ongoing operating efficiency.  This should benefit the Bank in 2019, a year which may prove challenging in regard to economic and political uncertainties."    

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., and most recently the Courthouse/Clarendon community in Arlington, Virginia. 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 community.  For more information about NCB, visit www.nationalcapitalbank.com. The Bank trades under the symbol NACB.

Forward Looking Statements