Business
National Capital Bancorp, Inc. Reports Second Quarter Earnings
National Capital Bancorp, Inc. Reports Second Quarter Earnings.
About this update from National Cap Bancorp Inc.
[{"type":"text","content":"\nNational Capital Bancorp, Inc. (the “Company”) (OTC Pink: NACB), the holding company for The National Capital Bank of Washington (“NCB” or the “Bank\") reported net income of $1,190,000, or $4.13 per common share, for the three months ended June 30, 2023, compared to net income of $1,111,000 or $3.87 per common share, for the quarter ended June 30, 2022. For the six months ended June 30, 2023, the Company reported net income of $2,139,000, or $7.44 per share, compared to $1,948,000, or $6.79 for the six months ended June 30, 2022. Improvement in asset mix through continued loan growth along with enhanced expense control during the quarter helped to offset pressure from increased funding costs. Non-interest income for the quarter included a one-time gain of $835,000 from the sale of the Bank’s holdings of class B shares of Visa, Inc. This gain was largely offset by a loss of $789,000 on the sale of $12.5 million of available-for-sale securities which was done to reposition the Company’s balance sheet.\n\n\nTotal assets increased during the quarter to $673,218,000 on June 30, 2023. Total loans of $465,151,000 on June 30, 2023 increased by $26.7 million during the quarter and have increased $40.0 million on a year-to-date basis. Total deposits remained stable during the quarter at $563,827,000 on June 30, 2023 and have decreased $7.9 million (1.4%) on a year-to-date basis. While the Company has begun to utilize borrowings from the FHLB in 2023 to help in meeting loan growth opportunities, it has 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.\n\n\nThe Company’s net interest margin of 3.30% during the second quarter of 2023 was down compared with 3.45% in the first quarter of 2023 but did improve from 3.06% in the second quarter of 2022. While the past few quarters have benefited from the favorable impact of interest rate increases on variable-rate loans, interest-bearing cash balances and on newly originated loans, we did see compression of our net interest margin in the most recent quarter due to increased competition for deposits along with some utilization of wholesale fundin...