National Capital Bancorp, Inc. Reports Fourth Quarter and Full Year Earnings and Quarterly Cash Dividend

Rhea-AI Summary

National Capital Bancorp (OTCID:NACB) reported net income of $1.659M for Q4 2025 and $7.033M for full-year 2025, with EPS of $1.44 (Q4) and $6.12 (FY). Total assets were $763.75M, loans $541.88M, and deposits $678.19M at 12/31/2025.

The board declared a quarterly cash dividend of $0.21 per share payable 2/26/2026; a share repurchase program up to $600,000 remains authorized through 2/28/2026 with no repurchases in Q4. Non-performing loans rose to 2.55%; allowance for credit losses was 1.21%.

Positive

• Net income increased to $7.033M for full-year 2025
• Deposits +8.0% year-over-year ($50.0M)
• Loans +4.4% year-over-year ($22.7M)
• Net interest margin improved to 3.55% vs 3.42% year-ago
• Shareholders' equity rose to $67.657M from $59.209M

Negative

• Non-performing loans rose to 2.55% of total loans (from 1.27% on 9/30/2025)
• Specific charge-offs and partial charge-offs of $1.4M, including $972k in Q4
• Allowance for credit losses only 1.21% of total loans despite higher NPLs

WASHINGTON, D.C. / ACCESS Newswire / January 28, 2026 / Washington, DC, 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 $1,659,000, or $1.44 per common share, for the three months ended December 31, 2025, compared to net income of $1,965,000 or $1.71 per common share, for the quarter ended December 31, 2024. For the year ended December 31, 2025, the Company reported net income of $7,033,000, or $6.12 per common share, compared to $6,381,000, or $5.55 per common share for the year ended December 31, 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 and effective expense management aided financial performance for the fourth quarter of 2025, the quarter was negatively affected by an increase in provision for credit losses due to an increase in specific reserves on new and existing non-performing loans.

Total assets ended the quarter at $763,751,000 on December 31, 2025. Total loans of $541,878,000 on December 31, 2025, reflected an increase of $4.1 million during the quarter and an increase of $22.7 million (4.4%) over the past twelve months. Total deposits increased $34.7 million during the quarter to $678,192,000 on December 31, 2025, and have increased $50.0 million (8.0%) over the past twelve months. The Company has focused on balanced growth over the past year with deposit growth providing 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 cash and available secured borrowing capacity to meet the financing and cash flow needs of our client base as well as continuing to pursue desirable new relationship opportunities.

The Company's net interest margin of 3.55% during the fourth quarter of 2025 was down slightly compared with 3.60% in the third quarter of 2025 but was up nicely compared with 3.42% in the fourth quarter of 2024. The past two quarters reflect 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 $67,657,000 on December 31, 2025, from $59,209,000 a year ago due primarily to the retained earnings for the past twelve months. For the year ended December 31, 2025, the return on average assets and return on average equity were 0.98% and 11.07%, respectively.

The Company experienced an increase in the level of non-performing loans to 2.55% of total loans on December 31, 2025, compared to 1.27% on September 30, 2025, and consisting primarily of four nonaccrual loans with two separate borrowers. Three of the loans are CRA-eligible multifamily loans, which participate in the DC Housing Voucher Program, while the fourth loan is a DC multifamily construction and development loan, which was put on nonaccrual during the quarter. All four loans have been individually evaluated for specific reserves using recent appraisals. The Company has recorded partial charge-offs on these loans of $1.4 million, including $972,000 in the fourth quarter of 2025. The allowance for credit losses to total loans was 1.21% on December 31, 2025, compared with 1.18% on December 31, 2024, while the net charge-off ratio was 0.26% for the full year of 2025. The Bank is working multiple paths to cost-effectively resolve these problem loans.

"Our 2025 results reflect a strong year of earnings growth and disciplined balance sheet management, delivering meaningful returns for our shareholders," said Jimmy Olevson, President and Chief Executive Officer to the Bank. "While the credit environment has become more complex, our team is prudently managing individual credits while working to maintain a conservative approach to reserves and capital. Relationship banking remains at the core of our strategy as we continue to support our clients and communities while focusing on our shareholders."

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 February 12, 2026. The dividend payout of $241,714 on 1,151,020 shares is payable February 26, 2026.

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 December 31, 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

Financial Highlights

(Dollars in thousands, except share data)		Three Months Ended								Twelve Months Ended
(Unaudited)		December 31								December 31
Condensed Statement of Income:		2025				2024				2025				2024
Interest income		$	9,075			$	8,755			$	34,748			$	34,193
Interest expense			2,617				2,796				9,742				11,603
Net interest income			6,458				5,959				25,006				22,590
Provision for (recovery of) credit losses			1,022				67				1,863				537
Net interest income after provision			5,436				5,892				23,143				22,053
Non-interest income			911				895				3,672				3,305
Non-interest expense			4,162				4,151				17,380				16,771
Income before taxes			2,185				2,636				9,435				8,587
Income tax provision			526				671				2,402				2,206
Net income		$	1,659			$	1,965			$	7,033			$	6,381
Share Data (1):
Weighted avg no. of shares outstanding			1,150,973				1,149,380				1,150,076				1,150,675
Period end shares outstanding			1,151,020				1,148,112				1,151,020				1,148,112
Per Common Share Data (1):
Net income		$	1.44			$	1.71			$	6.12			$	5.55
Period end closing stock price										$	67.00			$	63.00
Period end book value										$	58.78			$	51.57
Profitability Ratios, Annualized:
Return on average shareholders' equity			9.83	%			13.26	%			11.07	%			11.38	%
Return on average total assets			0.88	%			1.09	%			0.98	%			0.90	%
Efficiency ratio			56.48	%			60.56	%			60.60	%			64.77	%

Condensed Balance Sheets:		December 31				December 31
		2025				2024
Assets
Cash and equivalents		$	81,245			$	44,925
Securities, available for sale			57,307				61,579
Securities, held to maturity			57,936				62,436
Loans, held in portfolio			541,878				519,152
Allowance for credit losses			(6,575	)			(6,125	)
Premises and equipment, net			6,403				6,536
Bank owned life insurance			15,118				14,759
Other assets			10,439				11,079
Total assets		$	763,751			$	714,341
Liabilities and shareholders' equity
Deposits		$	678,192			$	628,205
FHLB advances and other borrowings			0				9,000
Subordinated notes, net of issuance cost			13,843				13,789
Other liabilities			4,059				4,138
Shareholders' equity			67,657				59,209
Total liabilities and shareholders' equity		$	763,751			$	714,341
Other Data:
Non-performing loans to total loans			2.55	%			0.61	%
Allowance to total loans			1.21	%			1.18	%
Net charge-offs (recoveries) to average loans			0.26	%			0.00	%
Loan-to-deposit ratio			79.90	%			82.64	%
Net interest margin for the quarter			3.55	%			3.42	%
Net interest margin for the year			3.62	%			3.30	%
(1) Per share data reflects the 4:1 stock split paid in the form of a dividend on November 26, 2024

SOURCE: NATIONAL CAPITAL BANCORP, INC.

View the original press release on ACCESS Newswire

FAQ

What were National Capital Bancorp (NACB) Q4 2025 earnings and EPS?

NACB reported Q4 2025 net income of $1.659M, or $1.44 per share. According to the company, full-year 2025 net income was $7.033M with EPS of $6.12.

How did National Capital Bancorp's deposits and loans change by year-end 2025 (NACB)?

Deposits increased $50.0M (8.0%) year-over-year to $678.19M. According to the company, total loans rose $22.7M (4.4%) to $541.88M at 12/31/2025.

What dividend did National Capital Bancorp (NACB) declare and when is it payable?

The board declared a cash dividend of $0.21 per share, payable February 26, 2026. According to the company, shareholders of record on February 12, 2026 will receive the payout.

Why did National Capital Bancorp's non-performing loans increase in Q4 2025 (NACB)?

NPLs rose to 2.55% of loans due to four nonaccrual loans involving two borrowers. According to the company, specific reserves and recent appraisals were recorded and partial charge-offs of $1.4M were taken.