National Capital Bancorp, Inc. Reports Second Quarter Earnings and Quarterly Cash Dividend

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 $1,624,000, or $1.41 per common share, for the three months ended June 30, 2026, compared to net income of $1,914,000, or $1.66 per common share, for the three months ended June 30, 2025. For the six months ended June 30, 2025, the Company reported net income of $2,677,000 or $2.32 per common share, compared to $3,587,000, or $3.12 per common share for the six months ended June 30, 2025. The decrease in earnings was primarily attributable to higher provision expense in the first quarter and merger related expenses.

Total assets were up year-over-year at $742,918,000 on June 30, 2026, compared to $702,597,000 on June 30, 2025. Total loans of $503,870,000 on June 30, 2026, decreased by $26.3 million during the quarter and have decreased by $5.9 million over the past twelve months. Loan balances in the quarter were impacted by the payoff of several construction loan projects, payoffs of several residential real estate loans, as well as lower utilization of commercial revolving credit lines. Total deposits of $655,952,000 on June 30, 2026, increased $5.3 million during the quarter but have increased $44.2 million over the past twelve months. The Company has been focused on balanced growth with increases in deposits 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 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 3.62% during the second quarter of 2026 increased compared with 3.51% in the first quarter of 2026 and comparable to 3.68% in the second quarter of 2025. The increase quarter over quarter is attributable to a favorable shift in deposit mix.

Total shareholders' equity increased to $70,172,000 on June 30, 2026 from $63,281,000 a year ago due primarily to the retained earnings for the past twelve months. For the six months ended June 30, 2026, the return on average assets and return on average equity was 0.72% and 7.79%, respectively.

The Company's level of non-performing loans of 2.32% of total loans on June 30, 2026, compared to 2.55% on December 31, 2025, consists of five nonaccrual loans with two separate borrowers. Four of the loans are CRA-eligible multifamily loans, which participate in the DC Housing Voucher Program, while the fifth loan is a DC multifamily construction and development loan. All five loans have been individually evaluated for specific reserves using recent appraisals. The Company has recorded partial charge-offs on these loans of $3.6 million, including $2.2 million in the first quarter of 2026. The allowance for credit losses to total loans was 1.21% on June 30, 2026, compared with 1.22% on June 30, 2025, while the annualized net charge-off ratio was 0.90% for the first half of 2026. The Bank is continuing to work multiple paths to cost-effectively resolve these problem loans.

"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 $0.26 per share for shareholders of record as of August 14, 2026. The dividend payout of $299,620.88on 1,152,388 shares is payable August 28, 2026.

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: [email protected]

National Capital Bancorp, Inc.
Financial Highlights

SOURCE: National Capital Bancorp, Inc.