National Capital Bancorp, Inc. (the “Company”) (OTC Pink: NACB), the holding company for The National Capital Bank of Washington (“NCB” or the “Bank") reported net income of $1,965,000, or $1.71 per common share, for the three months ended December 31, 2024, compared to net income of $1,088,000 or $0.95 per common share, for the quarter ended December 31, 2023. For the year ended December 31, 2024, the Company reported net income of $6,381,000, or $5.55 per share, compared to $4,363,000, or $3.79 for the year ended December 31, 2023. In November 2024, the Company implemented a 4:1 stock split, distributed in the form of a stock dividend, which resulted in the issuance of three new shares for each outstanding share of the Company’s common stock. Earnings per share, dividends per share and average shares outstanding have been adjusted to reflect the stock dividend. The increase in earnings was primarily attributable to the results of productivity improvement and cost-reduction initiatives that have taken place since early 2023 along with higher net interest income driven by continued growth in average earning assets.

Total assets ended the quarter at $714,341,000 on December 31, 2024. Total loans of $519,152,000 on December 31, 2024 were stable during the quarter but have increased $22.2 million (4.5%) over the past twelve months. Total deposits increased $22.9 million during the quarter to $628,205,000 on December 31, 2024, and have increased $47.6 million (8.2%) over the past twelve months. The Company has focused on balanced growth over the past year with deposit growth providing the 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 continue to pursue desirable new relationship opportunities. Non-performing loans were 0.61% on December 31, 2024 and consisted entirely of a $3.2 million loan which was well-secured and in the process of collection at year-end and was subsequently fully paid off, including interest, in early January 2025.

The Company’s net interest margin of 3.42% during the fourth quarter of 2024 compares favorably with 3.27% in the third quarter of 2024 and 3.21% in the fourth quarter of 2023. Our strong mix of core deposits has allowed the Company to maintain a more stable net interest margin during the significant rate increase cycle experienced since early 2022.

Total shareholders’ equity increased to $59,209,000 on December 31, 2024, from $53,370,000 a year ago due primarily to the retained earnings for the past twelve months. For the year ended December 31, 2024, the return on average assets and return on average equity was 0.90% and 11.38%, respectively.

"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 Chief Executive Officer of the Bank. Olevson continued "Our focus on productivity improvements and balanced growth have helped with our overall efficiency, and we are particularly proud of the increased value delivered to our shareholders. We look forward to building on this momentum as we continue to pursue enhanced returns and strengthening client relationships in the year ahead.”

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 14, 2025. The dividend payout of $241,103.52 on 1,148,112 shares is payable February 28, 2025, and represents a $0.045 per share, or 27.3% increase, over the prior quarterly dividend.

In April of 2024, the Board of Directors approved a share repurchase program of up to $300,000, allowing for purchases from time to time, in open market or private transactions with a program expiration date of February 28, 2025. During the quarter ended December 31, 2024, the Company repurchased 2,596 shares at an average share price of $47.76, adjusted for the 4:1 stock split. Year-to-date, the Company repurchased $176,643 of common stock consisting of 3,796 shares at an average share price of $46.53.

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.

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