Business
National Capital Bancorp, Inc. Reports Third Quarter Earnings
National Capital Bancorp, Inc. Reports Third 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 $1,136,000, or $3.95 per common share, for the three months ended September 30, 2023, compared to net income of $1,285,000 or $4.47 per common share, for the quarter ended September 30, 2022. For the nine months ended September 30, 2023, the Company reported net income of $3,275,000, or $11.39 per share, compared to $3,233,000, or $11.26 for the nine months ended September 30, 2022. A recovery of provision for credit losses in the third quarter of the prior year was the leading factor in the decrease in Company profitability in the third quarter of 2023. Improvement in asset mix through continued loan growth along with enhanced expense control during the quarter helped to offset pressure from increased funding costs. Loan quality remains pristine with no non-performing loans as of September 30, 2023.\n\n\nTotal assets increased during the quarter to $682,002,000 on September 30, 2023. Total loans of $477,119,000 on September 30, 2023, increased by $12.0 million during the quarter and have increased $52.0 million on a year-to-date basis. Total deposits remained fairly stable during the quarter at $560,930,000 on September 30, 2023, and have decreased $10.8 million (1.9%) on a year-to-date basis. While the Company has begun to utilize borrowings from the FHLB and the Federal Reserve 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 3.23% during the third quarter of 2023 was down compared with 3.30% in the second quarter of 2023 but did improve from 3.08% in the third quarter of 2022. While the past several 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 again in the most recent quarter due to increased competition for deposits along with some utilization of...