National Capital Bancorp, Inc. Reports Second Quarter Earnings and Quarterly Cash Dividend
Rhea-AI Summary
National Capital Bancorp (OTC: NACB) reported second-quarter 2026 net income of $1.624 million, or $1.41 per share, down from $1.914 million, or $1.66 per share, a year earlier. For the six months ended June 30, 2026, net income was $2.677 million versus $3.587 million in 2025, with lower earnings primarily tied to higher credit-loss provisions and merger-related expenses.
Total assets rose year over year to $742.9 million, deposits increased to $656.0 million, while loans declined to $503.9 million, partly due to construction and residential loan payoffs and lower line utilization. Net interest margin improved sequentially to 3.62%. Non-performing loans were 2.32% of total loans, with $3.6 million of partial charge-offs recorded. Shareholders’ equity increased to $70.2 million, and book value reached $60.89 per share.
The board declared a quarterly cash dividend of $0.26 per share, payable August 28, 2026, to shareholders of record on August 14, 2026. The company is working toward closing its previously announced merger with ODNB Financial in fourth-quarter 2026, subject to regulatory and shareholder approvals.
Positive
- Net interest income rose to $6.45M in Q2 2026 from $6.12M
- Non-interest income increased to $1.19M in Q2 2026 from $0.89M
- Total assets up year over year to $742.9M from $702.6M
- Total deposits up $44.2M year over year to $656.0M
- Net interest margin improved sequentially to 3.62% in Q2 2026
- Quarterly cash dividend of $0.26 per share declared for August 2026
- Shareholders’ equity increased to $70.2M; book value $60.89 per share
- No FHLB advances or other borrowings outstanding at June 30, 2026
- Definitive merger agreement signed with ODNB, closing targeted Q4 2026
Negative
- Q2 2026 net income declined to $1.62M from $1.91M year over year
- Six-month 2026 net income fell to $2.68M from $3.59M in 2025
- Loans decreased $26.3M during Q2 2026 to $503.9M
- Non-performing loans elevated at 2.32% of total loans
- Partial charge-offs of $3.6M recorded on five problem loans
- Non-interest expense rose to $5.36M in Q2 2026 from $4.36M
- Efficiency ratio worsened to 70.20% in Q2 2026 from 62.21%
- Net charge-offs ratio increased to 0.90% for first half 2026
AI-generated analysis. How Rhea-AI works. Not financial advice.
WASHINGTON, DC / ACCESS Newswire / July 29, 2026 / National Capital Bancorp, Inc. ( "NACB" or the "Company") (OTCID:NACB), the holding company for The National Capital Bank of Washington ("NCB" or the "Bank") reported net income of
Total assets were up year-over-year at
The Company's net interest margin of
Total shareholders' equity increased to
The Company's level of non-performing loans of
"We continue to work through resolutions for our non-performing assets while concurrently focusing on growing the Bank through strong, relationship based, loan opportunities funded by core deposits." said Jimmy Olevson, President and Chief Executive Officer of the Bank. "We are also excited to work towards closing the previously announced merger with ODNB Financial Corporation, with an expected closing date in the fourth quarter of this year."
The Company also announced today that its Board of Directors has declared a cash dividend of
On June 15, 2026, the Company and ODNB Financial Corporation ("ODNB"), the holding company of Old Dominion National Bank, jointly announced that they have entered into a definitive merger agreement pursuant to which NACB will merge into ODNB, with ODNB surviving as the bank holding company. The combined holding company, which will be renamed National Capital Bancorp, Inc., expects to list its common stock and trade under the ticker symbol "NACB". Old Dominion National Bank will merge with and into NCB, with NCB surviving as the wholly owned subsidiary bank.
The merger is expected to close in the fourth quarter of 2026, subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approvals from ODNB and NACB shareholders.
About National Capital Bancorp, Inc.
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. In addition, with respect to the proposed merger with ODNB, the following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the business of NACB may not be successfully integrated into ODNB or the business of Old Dominion National Bank may not be successfully integrated into NCB, or such integration may take longer, be more difficult, time-consuming or costly to accomplish than expected; (2) the expected growth opportunities or cost savings from the proposed transaction may not be fully realized or may take longer to realize than expected; (3) deposit attrition, operating costs, customer losses and business disruption following the proposed transaction, including adverse effects on relationships with employees and customers, may be greater than expected; (4) the possibility that the proposed transaction does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (5) the outcome of any legal proceedings that may be instituted in connection with the proposed transaction; (6) the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement; (7) reputational risk and potential adverse reactions of customers, employees or other business partners, including those resulting from the announcement or completion of the proposed transaction; (8) the diversion of management's attention and time from ongoing business operations and opportunities on merger-related matters; and (9) certain restrictions during the pendency of the proposed transaction that may impact NACB's ability to pursue certain business opportunities or strategic transactions. The foregoing list of important factors is not exclusive. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact:
William Bauder, EVP, Chief Financial Officer
Phone: 202-546-8000
Email: wbauder@nationalcapitalbank.bank
National Capital Bancorp, Inc.
Financial Highlights
(Dollars in thousands, except share data) | Three Months Ended | Six Months Ended | ||||||||||||||
(Unaudited) | June 30 | June 30 | ||||||||||||||
Condensed Statement of Income: | 2026 | 2025 | 2026 | 2025 | ||||||||||||
Interest income | $ | 8,677 | $ | 8,352 | $ | 17,359 | $ | 16,779 | ||||||||
Interest expense | 2,228 | 2,232 | 4,611 | 4,580 | ||||||||||||
Net interest income | 6,449 | 6,120 | 12,748 | 12,199 | ||||||||||||
Provision for (recovery of) credit losses | 105 | 65 | 1,904 | 130 | ||||||||||||
Net interest income after provision | 6,344 | 6,055 | 10,844 | 12,069 | ||||||||||||
Non-interest income | 1,189 | 889 | 2,505 | 1,711 | ||||||||||||
Non-interest expense | 5,362 | 4,360 | 9,900 | 8,941 | ||||||||||||
Income before taxes | 2,171 | 2,584 | 3,449 | 4,839 | ||||||||||||
Income tax provision | 547 | 670 | 772 | 1,252 | ||||||||||||
Net income | $ | 1,624 | $ | 1,914 | $ | 2,677 | $ | 3,587 | ||||||||
Share Data: | ||||||||||||||||
Weighted avg no. of shares outstanding | 1,152,388 | 1,150,207 | 1,151,598 | 1,149,218 | ||||||||||||
Period end shares outstanding | 1,152,388 | 1,150,870 | 1,152,388 | 1,150,870 | ||||||||||||
Per Common Share Data: | ||||||||||||||||
Net income | $ | 1.41 | $ | 1.66 | $ | 2.32 | $ | 3.12 | ||||||||
Closing Stock Price | $ | 78.00 | $ | 75.00 | ||||||||||||
Book Value | $ | 60.89 | $ | 54.91 | ||||||||||||
Profitability Ratios, Annualized: | ||||||||||||||||
Return on average shareholders' equity | 9.35 | % | 12.34 | % | 7.79 | % | 11.78 | % | ||||||||
Return on average total assets | 0.88 | % | 1.11 | % | 0.72 | % | 1.04 | % | ||||||||
Efficiency ratio | 70.20 | % | 62.21 | % | 64.91 | % | 64.28 | % | ||||||||
Condensed Balance Sheets: | June 30 | December 31 | June 30 | |||||||||
2026 | 2025 | 2025 | ||||||||||
Assets | ||||||||||||
Cash and equivalents | $ | 101,723 | $ | 81,245 | $ | 46,686 | ||||||
Securities, available for sale | 54,694 | 57,307 | 59,638 | |||||||||
Securities, held to maturity | 56,835 | 57,936 | 60,264 | |||||||||
Loans, held for sale | 0 | 0 | 0 | |||||||||
Loans, held in portfolio | 503,870 | 541,878 | 509,759 | |||||||||
Allowance for credit losses | (6,100 | ) | (6,575 | ) | (6,225 | ) | ||||||
Premises and equipment, net | 6,697 | 6,403 | 6,218 | |||||||||
Bank owned life insurance | 14,998 | 15,118 | 14,936 | |||||||||
Other assets | 10,201 | 10,439 | 11,321 | |||||||||
Total assets | $ | 742,918 | $ | 763,751 | $ | 702,597 | ||||||
Liabilities and shareholders' equity | ||||||||||||
Deposits | $ | 655,952 | $ | 678,192 | $ | 611,778 | ||||||
FHLB advances and other borrowings | 0 | 0 | 10,000 | |||||||||
Subordinated notes, net of issuance cost | 13,871 | 13,843 | 13,816 | |||||||||
Other liabilities | 2,923 | 4,059 | 3,722 | |||||||||
Shareholders' equity | 70,172 | 67,657 | 63,281 | |||||||||
Total liabilities and shareholders' equity | $ | 742,918 | $ | 763,751 | $ | 702,597 | ||||||
Other Data: | ||||||||||||
Non-performing loans to total loans | 2.32 | % | 2.55 | % | 0.82 | % | ||||||
Allowance to total loans | 1.21 | % | 1.21 | % | 1.22 | % | ||||||
Net charge-offs (recoveries) to average loans | 0.90 | % | 0.26 | % | 0.00 | % | ||||||
Loan-to-deposit ratio | 76.82 | % | 79.90 | % | 83.32 | % | ||||||
Net interest margin for the quarter | 3.62 | % | 3.55 | % | 3.68 | % | ||||||
Net interest margin for the year | 3.57 | % | 3.62 | % | 3.67 | % | ||||||
SOURCE: National Capital Bancorp, Inc.
View the original press release on ACCESS Newswire