National Capital Bancorp Profit Falls 88% Year Over Year as Credit-Loss Provision Rises

National Capital Bancorp Inc.’s net income fell 88% year over year to $215,000 for the three months ended Sept. 30, 2026, as its provision for credit losses rose to $1.784 million.

Net income was $215,000, or $0.19 per common share, down from $1.787 million, or $1.55 per share, in the year-earlier quarter. National Capital Bancorp attributed the decline mainly to higher credit-loss provisions in the first and third quarters of 2026 and merger-related expenses.

Net interest income was $6.265 million, while noninterest income was $908,000. Together, those amounts totaled $7.173 million, compared with $7.399 million in the year-earlier quarter. The provision for credit losses was $711,000 in the third quarter of 2025.

“Our earnings reflect merger-related expenses and continued challenges in the Washington, DC, multifamily market,” said Jimmy Olevson, the bank’s president and CEO.

At Sept. 30, the company had $709.4 million in assets, $501.9 million in loans and $622.7 million in deposits. Loans were down $35.8 million and deposits were down $20.7 million from a year earlier. The company had six nonaccrual loans involving two borrowers and recorded $6.4 million in partial charge-offs, including $2.8 million during the quarter.

National Capital Bancorp is the holding company for The National Capital Bank of Washington, which was founded in 1889. In June, National Capital Bancorp and ODNB Financial announced a merger structure under which National Capital Bancorp would merge into ODNB, with the Washington bank remaining the surviving bank subsidiary.

The board declared a cash dividend of $0.26 per share for shareholders of record Nov. 13, 2026. Payment is scheduled for Nov. 25.