National Capital Bancorp, Inc. Reports Third Quarter Earnings and Quarterly Cash Dividend
Credit-loss provisions rose as quarterly earnings declined, while the pending ODNB merger still requires regulatory and shareholder approvals.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
National Capital Bancorp (OTCID:NACB) reported third-quarter net income of $215 thousand, down from $1.787 million a year earlier. Earnings per share fell to $0.19 from $1.55. Nine-month net income declined to $2.892 million from $5.374 million. The company attributed lower earnings primarily to higher credit-loss provisions and merger-related expenses.
Quarterly net interest margin narrowed to 3.52% from 3.60% a year earlier. Loans totaled $501.9 million and deposits $622.7 million, both lower year over year. Non-performing loans fell to 1.43% of loans from 2.55% at year-end; third-quarter partial charge-offs were $2.8 million.
A $0.26-per-share dividend is payable November 25 to holders of record November 13, 2026. The company expects its merger into ODNB Financial Corporation to close in the fourth quarter of 2026, subject to regulatory and both companies' shareholder approvals.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.ODNB merger agreement is definitive; the company expects closing in the fourth quarter of 2026.
- Moderate pointCash and equivalents increased to $70.457 million from $46.090 million a year earlier.
- Minor pointShareholders' equity rose to $68.664 million from $65.586 million a year earlier.
- Minor pointNine-month net interest income increased to $19.013 million from $18.548 million in 2025.
- Minor pointNine-month non-interest income increased to $3.413 million from $2.761 million in 2025.
3 minor points
- Minor pointInterest expense fell year over year to $2.326 million quarterly and $6.937 million over nine months.
- Minor pointBook value per share increased to $59.59 from $56.99 a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Combined holding company expects to list on Nasdaq under the NACB ticker.
Negative
- Major pointThird-quarter net income fell to $215 thousand, or $0.19 per share, from $1.787 million, or $1.55.
- Moderate pointCredit-loss provisions rose year over year to $1.784 million quarterly and $3.688 million over nine months.
- Moderate pointPartial loan charge-offs totaled $6.4 million, including $2.8 million in the third quarter of 2026. 6.4% of market cap
- Moderate pointLoans of $501.9 million declined $2.0 million during the quarter and $35.8 million over twelve months.
- Moderate pointDeposits of $622.7 million declined $33.2 million during the quarter and $20.7 million over twelve months.
15 minor points
- Minor pointNine-month net income fell to $2.892 million, or $2.51 per share, from $5.374 million, or $4.67.
- Minor pointMerger-related expenses contributed to the earnings decline, alongside higher credit-loss provisions.
- Minor pointQuarterly net interest margin narrowed to 3.52% from 3.62% sequentially and 3.60% a year earlier.
- Minor pointQuarterly net interest income declined to $6.265 million from $6.349 million a year earlier.
- Minor pointQuarterly non-interest income declined to $908 thousand from $1.050 million a year earlier.
- Minor pointNon-interest expense rose year over year to $4.706 million quarterly and $14.606 million over nine months.
- Minor pointTotal assets declined to $709.444 million from $727.154 million a year earlier.
- Minor pointNon-performing loans fell to 1.43% from 2.55% at year-end, but exceeded 1.27% a year earlier.
- Minor pointNon-performing assets fell to 1.33% from 1.81% at year-end, but exceeded 0.94% a year earlier.
- Minor pointAnnualized nine-month net charge-off ratio increased to 1.31% from 0.11% a year earlier.
- Minor pointAllowance for credit losses relative to loans declined to 1.02% from 1.21% a year earlier.
- Minor pointAnnualized return on average equity fell year over year to 1.20% quarterly and 5.54% over nine months.
- Minor pointAnnualized return on average assets fell year over year to 0.12% quarterly and 0.52% over nine months.
- Minor pointEfficiency ratio worsened year over year to 65.61% quarterly and 65.13% over nine months.
- Minor pointODNB merger closing remains subject to regulatory approvals and approvals from both companies' shareholders.
Details
News Market Reaction – NACB
On Oct 30, the first trading day after this news, NACB closed 0.11% below the previous close.
Data tracked by StockTitan Argus for the Oct 30 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
WASHINGTON, D.C. / ACCESS Newswire / October 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 decreased year-over-year to
The Company's net interest margin of
Total shareholders' equity increased to
The Company's non-performing loans were
"Our earnings reflect merger-related expenses and continued challenges in the Washington, DC, multifamily market," said Jimmy Olevson, President and Chief Executive Officer of the Bank. "We remain focused on working through our problem assets while selectively pursuing strong, relationship-based lending opportunities and positioning the Bank for long-term value creation as we move toward completion of our previously announced merger with ODNB Financial Corporation."
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 on Nasdaq 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 on which they are made). 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.
Additional Information and Where to Find It
In connection with the proposed merger of NACB with and into ODNB, ODNB filed with the Securities and Exchange Commission (the "SEC") a Registration Statement on Form S-4 (Registration No. 333-297905), which was declared effective by the SEC on October 9, 2026. The Registration Statement includes a joint proxy statement of NACB and ODNB that also constitutes a prospectus of ODNB (the "Joint Proxy Statement/Prospectus"). The definitive Joint Proxy Statement/Prospectus, dated October 13, 2026, was first mailed to shareholders of NACB and ODNB on or about October 14, 2026. ODNB may file with the SEC other relevant documents concerning the proposed transaction.
INVESTORS AND SHAREHOLDERS OF NACB AND ODNB ARE URGED TO READ THE REGISTRATION STATEMENT AND THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT NACB, ODNB AND THE PROPOSED TRANSACTION. Free copies of the Registration Statement and the Joint Proxy Statement/Prospectus, as well as other filings containing information about NACB and ODNB, may be obtained at the SEC's website (http://www.sec.gov). Free copies may also be obtained by directing a request by mail to NACB at 316 Pennsylvania Avenue, SE, Washington, DC 20003, by telephone at 202-851-4483, or by email or mail to ODNB at shareholders@odnb.bank or 8607 Westwood Center Drive, Suite 440, Tysons Corner, VA 22182, Attention: Investor Relations, or by accessing NACB's website at https://www.nationalcapitalbank.bank under "About Us - Investor Relations" or ODNB's website at https://www.odnb.bank under "About Us - Investor Relations." The information on NACB's and ODNB's websites is not, and shall not be deemed to be, a part of this communication or incorporated into other filings either company makes with the SEC.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy securities of NACB or ODNB or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Participants in the Solicitation
NACB, ODNB and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from the shareholders of NACB and shareholders of ODNB in connection with the proposed transaction. Information about the interests of the directors and executive officers of NACB and ODNB and other persons who may be deemed to be participants in the solicitation, and a description of their direct and indirect interests, by security holdings or otherwise, is included in the definitive Joint Proxy Statement/Prospectus filed with the SEC on October 13, 2026. Free copies of this document may be obtained as described above.
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 | Nine Months Ended | ||||||||||||||
(Unaudited) | September 30 | September 30 | ||||||||||||||
Condensed Statement of Income: | 2026 | 2025 | 2026 | 2025 | ||||||||||||
Interest income | $ | 8,591 | $ | 8,894 | $ | 25,950 | $ | 25,673 | ||||||||
Interest expense | 2,326 | 2,545 | 6,937 | 7,125 | ||||||||||||
Net interest income | 6,265 | 6,349 | 19,013 | 18,548 | ||||||||||||
Provision for (recovery of) credit losses | 1,784 | 711 | 3,688 | 841 | ||||||||||||
Net interest income after provision | 4,481 | 5,638 | 15,325 | 17,707 | ||||||||||||
Non-interest income | 908 | 1,050 | 3,413 | 2,761 | ||||||||||||
Non-interest expense | 4,706 | 4,277 | 14,606 | 13,218 | ||||||||||||
Income before taxes | 683 | 2,411 | 4,132 | 7,250 | ||||||||||||
Income tax provision | 468 | 624 | 1,240 | 1,876 | ||||||||||||
Net income | $ | 215 | $ | 1,787 | $ | 2,892 | $ | 5,374 | ||||||||
Share Data: | ||||||||||||||||
Weighted avg no. of shares outstanding | 1,152,355 | 1,150,870 | 1,151,595 | 1,149,774 | ||||||||||||
Period end shares outstanding | 1,152,238 | 1,150,870 | 1,152,238 | 1,150,870 | ||||||||||||
Per Common Share Data: | ||||||||||||||||
Net income | $ | 0.19 | $ | 1.55 | $ | 2.51 | $ | 4.67 | ||||||||
Closing Stock Price | $ | 84.70 | $ | 65.00 | ||||||||||||
Book Value | $ | 59.59 | $ | 56.99 | ||||||||||||
Profitability Ratios, Annualized: | ||||||||||||||||
Return on average shareholders' equity | 1.20 | % | 12.34 | % | 5.54 | % | 11.78 | % | ||||||||
Return on average total assets | 0.12 | % | 1.11 | % | 0.52 | % | 1.04 | % | ||||||||
Efficiency ratio | 65.61 | % | 57.81 | % | 65.13 | % | 62.03 | % | ||||||||
Condensed Balance Sheets: | September 30 | December 31 | September 30 | |||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||
Assets | ||||||||||||||||
Cash and equivalents | $ | 70,457 | $ | 81,245 | $ | 46,090 | ||||||||||
Securities, available for sale | 52,233 | 57,307 | 59,001 | |||||||||||||
Securities, held to maturity | 55,694 | 57,936 | 59,022 | |||||||||||||
Loans, held for sale | 0 | 0 | 0 | |||||||||||||
Loans, held in portfolio | 501,917 | 541,878 | 537,753 | |||||||||||||
Allowance for credit losses | (5,138 | ) | (6,575 | ) | (6,525 | ) | ||||||||||
Premises and equipment, net | 6,636 | 6,403 | 6,434 | |||||||||||||
Bank owned life insurance | 15,086 | 15,118 | 15,027 | |||||||||||||
Other assets | 12,559 | 10,439 | 10,352 | |||||||||||||
Total assets | $ | 709,444 | $ | 763,751 | $ | 727,154 | ||||||||||
Liabilities and shareholders' equity | ||||||||||||||||
Deposits | $ | 622,727 | $ | 678,192 | $ | 643,444 | ||||||||||
FHLB advances and other borrowings | 0 | 0 | 0 | |||||||||||||
Subordinated notes, net of issuance cost | 13,884 | 13,843 | 13,830 | |||||||||||||
Other liabilities | 4,169 | 4,059 | 4,294 | |||||||||||||
Shareholders' equity | 68,664 | 67,657 | 65,586 | |||||||||||||
Total liabilities and shareholders' equity | $ | 709,444 | $ | 763,751 | $ | 727,154 | ||||||||||
Other Data: | ||||||||||||||||
Non-performing loans to total loans | 1.43 | % | 2.55 | % | 1.27 | % | ||||||||||
Non-performing assets to total assets | 1.33 | % | 1.81 | % | 0.94 | % | ||||||||||
Allowance to total loans | 1.02 | % | 1.21 | % | 1.21 | % | ||||||||||
Net charge-offs (recoveries) to average loans | 1.31 | % | 0.26 | % | 0.11 | % | ||||||||||
Loan-to-deposit ratio | 80.60 | % | 79.90 | % | 83.57 | % | ||||||||||
Net interest margin for the quarter | 3.52 | % | 3.55 | % | 3.60 | % | ||||||||||
Net interest margin for the year | 3.55 | % | 3.62 | % | 3.64 | % | ||||||||||
SOURCE: NATIONAL CAPITAL BANCORP, INC.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were National Capital Bancorp's third-quarter 2026 earnings?
National Capital Bancorp earned $215 thousand, or $0.19 per common share, compared with $1.787 million, or $1.55 per common share, in the third quarter of 2025. The company attributed the earnings decline primarily to higher credit-loss provisions and merger-related expenses.
When will National Capital Bancorp pay its quarterly dividend?
The $0.26-per-share cash dividend is payable November 25, 2026, to shareholders of record November 13, 2026. The declared payout is $299,581.88 on 1,152,238 shares.
Which problem loans remain at National Capital Bancorp?
The company had six nonaccrual loans with two separate borrowers at September 30, 2026. Four were multifamily loans participating in the DC Housing Voucher Program, one was a DC multifamily construction and development loan, and one was an SBA 7a commercial loan. Each was individually evaluated for specific reserves.
How will National Capital Bancorp's merger with ODNB be structured?
NACB will merge into ODNB Financial Corporation, which will survive as the holding company and be renamed National Capital Bancorp. Old Dominion National Bank will merge into The National Capital Bank of Washington, which will survive as the wholly owned subsidiary bank.
Why did National Capital Bancorp's net interest margin decline sequentially?
The company attributed the sequential decline to an unfavorable shift in deposit mix and higher borrowing expenses after its subordinated debt moved to a floating rate earlier in 2026. Quarterly net interest margin decreased to 3.52% from 3.62% in the second quarter.