Cash Dividend Declared as National Capital Bancorp, Inc. Reports Q4 and Full Year Earnings
National Capital Bancorp, Inc. (OTC Pink: NACB), the parent company of The National Capital Bank of Washington (NCB), reported a solid performance for the fourth quarter and full year ending December 31, 2024. For the quarter, the Company posted net income of $1,965,000, or $1.71 per common share, compared to $1,088,000, or $0.95 per common share, in the same period of 2023. For the full year, the Company reported net income of $6,381,000, or $5.55 per share, up from $4,363,000, or $3.79 per share, in 2023. The increase in earnings was primarily driven by productivity improvements, cost-reduction initiatives, and higher net interest income due to the continued expansion of average earning assets.
In November 2024, the Company executed a 4:1 stock split, distributing three additional shares for each outstanding share of common stock. This resulted in the adjustment of earnings per share, dividends per share, and average shares outstanding. The Company’s overall performance reflects steady growth in key metrics and a strong foundation of financial stability, which is essential for delivering consistent cash returns to shareholders.
As of December 31, 2024, National Capital Bancorp’s total assets stood at $714,341,000. The loan portfolio remained stable during the quarter at $519,152,000, reflecting a 4.5% year-over-year increase of $22.2 million. This growth in loans was supported by strong demand for credit and the Company’s focus on maintaining balanced growth. Total deposits reached $628,205,000, marking a $22.9 million increase during the quarter and an 8.2% increase year-over-year, which was essential for funding the Company’s lending activities and minimizing reliance on wholesale funding sources.
The Company’s strategy of balanced growth has allowed it to maintain a relatively low reliance on wholesale funding, ensuring the stability of its operations and reducing the need for external cash sources. In turn, this has led to a strong liquidity position, enabling the Company to fund new loan opportunities and service client needs effectively. As of December 31, 2024, non-performing loans stood at 0.61%. The Company’s only non-performing loan, valued at $3.2 million, was well-secured and in the process of collection at year-end. The loan was fully paid off, including interest, in early January 2025, which further bolstered the Bank’s asset quality and cash flow.
The Company’s net interest margin for Q4 2024 was 3.42%, up from 3.27% in the third quarter of 2024 and 3.21% in Q4 2023. This improvement was due to the Company’s strong core deposit mix, which helped to stabilize its margin despite the rising interest rates experienced since 2022. The stability of the net interest margin reflects the Company’s ability to effectively manage interest rate risk while benefiting from the growth in earning assets, which in turn positively impacted cash flows. As a result, the Company has been able to generate strong cash returns from its core operations.
Total shareholders’ equity increased to $59,209,000 on December 31, 2024, up from $53,370,000 a year earlier, primarily due to retained earnings for the past year. The Company’s return on average assets (ROA) for the year was 0.90%, and its return on average equity (ROE) was a strong 11.38%, showcasing the Company’s ability to generate profitable returns for shareholders while maintaining a solid capital base. These figures indicate that the Company is effectively utilizing its capital to generate consistent cash returns, benefiting shareholders and positioning itself for future growth.
“We are very pleased with our fourth-quarter and full-year results, which reflect the hard work and dedication of our exceptional team,” said Jimmy Olevson, President and CEO of National Capital Bancorp. “Our focus on productivity improvements and balanced growth has helped to enhance our overall efficiency, and we are particularly proud of the increased value delivered to our shareholders. We look forward to building on this momentum in the year ahead, as we continue to pursue enhanced returns and strengthen client relationships.” This commitment to enhanced returns is backed by the Company’s cash-generating capabilities, which help it meet shareholder expectations.
In addition to these strong financial results, the Company declared a quarterly dividend of $0.21 per share for shareholders of record as of February 14, 2025. The dividend payout, totaling $241,103.52 on 1,148,112 shares, will be payable on February 28, 2025. This represents a 27.3% increase over the previous quarterly dividend. The Company’s commitment to paying dividends reflects its ability to generate consistent cash flow and return value to its shareholders, maintaining a strong cash position for reinvestment.
The Board of Directors also approved a share repurchase program in April 2024, authorizing up to $300,000 in repurchases of common stock. The program allows for purchases in open market or private transactions and expires on February 28, 2025. In Q4 2024, the Company repurchased 2,596 shares at an average price of $47.76 (adjusted for the 4:1 stock split). Year-to-date, the Company repurchased $176,643 worth of common stock, consisting of 3,796 shares at an average price of $46.53. These actions further demonstrate the Company’s focus on creating shareholder value through cash-efficient strategies.
Founded in 1889, National Capital Bancorp is Washington, D.C.’s oldest bank. It operates through The National Capital Bank of Washington, which is headquartered on Capitol Hill with additional locations in Northwest D.C., Arlington, Virginia, and Bethesda, Maryland. The Bank’s product offerings include personal and business deposit accounts, online and mobile banking services, as well as sophisticated treasury management solutions.
Looking ahead, National Capital Bancorp is well-positioned to continue its strong performance, fueled by a focus on balanced growth, operational efficiency, and its commitment to delivering exceptional customer service. The Company remains dedicated to providing its clients with innovative financial solutions while pursuing new growth opportunities in the evolving banking environment. The steady cash flow generated by these efforts enables National Capital Bancorp to maintain its position as a trusted partner to its clients and shareholders. With a continued focus on cash management and growth, the Company is poised for further success in the coming years.
