WASHINGTON, DC / ACCESS Newswire / October 29, 2025 / National Capital Bancorp, Inc. (the "Company") (OTCID:NACB), the holding company for The National Capital Bank of Washington ("NCB" or the "Bank"), reported net income of $1,787,000, or $1.55 per common share, for the three months ended September 30, 2025, compared to net income of $1,726,000, or $1.50 per common share, for the quarter ended September 30, 2024. For the nine months ended September 30, 2025, the Company reported net income of $5,374,000, or $4.67 per common share, compared to $4,416,000, or $3.84 per common share, for the nine months ended September 30, 2024. Earnings per share, cash dividends per share and average shares outstanding have been adjusted to reflect the November 2024 4:1 stock split paid in the form of a stock dividend. The increase in year-to-date earnings was primarily attributable to higher net interest income driven by continued net interest margin expansion. While strong revenue growth aided the financial performance for the third quarter of 2025, the quarter was negatively affected by an increase in provision for credit losses due to both significant quarterly loan growth as well as an increase in specific reserves on one borrower relationship.

Total assets ended the quarter at $727,154,000 on September 30, 2025. Total loans of $537,753,000 on September 30, 2025 reflected an increase of $28.0 million during the quarter and an increase of $18.4 million (3.6%) over the past twelve months. Total deposits increased $31.7 million during the quarter to $643,444,000 on September 30, 2025 and have increased $38.1 million (6.3%) over the past twelve months. The Company has focused on balanced growth over the past year with deposit growth providing the funding for new loan opportunities. As a result, the Company continues to experience a relatively low reliance on wholesale funding sources and maintains strong levels of available secured borrowing capacity to meet the financing and cash flow needs of our client base as well as continue to pursue desirable new relationship opportunities.

The Company's net interest margin of 3.60% during the third quarter of 2025 was down compared with 3.68% in the second quarter of 2025 but was up nicely compared with 3.27% in the third quarter of 2024. The most recent quarter reflects strong deposit growth including some higher cost deposits. However, our strong mix of core deposits has allowed the Company to maintain a more stable cost of funds and combined with a favorable shift in our asset mix, has resulted in the improved net interest margin compared with the prior year.

Total shareholders' equity increased to $65,586,000 on September 30, 2025 from $58,606,000 a year ago due primarily to the retained earnings for the past twelve months. For the nine months ended September 30, 2025, the annualized return on average assets and return on average equity was 1.02% and 11.52%, respectively.

The Company experienced an uptick in non-performing loans, increasing from 0.82% of total loans on June 30, 2025 to 1.27% on September 30, 2025, and consisting of three nonaccrual loans with a single borrower, two of which were placed on nonaccrual during the third quarter of 2025. These CRA-eligible multifamily loans, which participate in the DC Housing Voucher Program, have been individually evaluated for specific reserves using recent appraisals. The Company recorded partial charge-offs on these loans of $411,000 in the third quarter of 2025. The allowance for credit losses to total loans increased to 1.21% on September 30, 2025, compared with 1.17% on September 30, 2024.

"We are pleased with the Bank's third quarter results, which reflect strong deposit growth and solid loan production following the first half of the year, when we experienced a large number of planned loan payoffs," said Jimmy Olevson, President and Chief Executive Officer of the Bank. "While we are encouraged by our performance, we remain cautious given the ongoing uncertainty in the DC economy and are closely monitoring potential impacts across our loan portfolio. Our disciplined approach to credit and focus on long-term relationship banking continue to guide our strategy and support sustainable shareholder value."

The Company also announced today that its Board of Directors has declared a dividend of $0.21 per share for shareholders of record as of November 12, 2025. The dividend payout of $241,682.70 on 1,150,870 shares is payable November 26, 2025.

In February 2025, the Board of Directors approved a share repurchase program of up to $600,000, allowing for purchases from time to time, in open market or private transactions with an expiration date of February 28, 2026. This program replaced the $300,000 share repurchase program approved in 2024. There were no share repurchases during the quarter ended September 30, 2025.

National Capital Bancorp, Inc. is the holding company for The National Capital Bank of Washington, which 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 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 services and sophisticated treasury management solutions - 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.bank.

Forward-Looking Statements

This news release may contain certain forward-looking statements, such as statements of the Company's plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified using 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 Company'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 Company to effectively manage its growth and results of regulatory examinations, among other factors. The foregoing list of important factors is not exclusive.

Contact: Randal J. Rabe, EVP, Chief Financial Officer
Phone: 202-546-8000
Email: rrabe@nationalcapitalbank.bank

SOURCE: NATIONAL CAPITAL BANCORP, INC.