The National Capital Bank of Washington (NCB) reported net income of $1,050,000, or $3.67 per common share, for the three months ended September 30, 2020, compared to net income of $735,000 or $2.57 per share for the quarter ended September 30, 2019. For the nine months ended September 30, 2020, NCB reported net income of $1,645,000, or $5.75 per share, compared to $2,057,000, or $7.21 for the nine months ended September 30, 2019. The current quarter results include the favorable after-tax impact of $327,000 for two related transactions. The Bank recognized a $619,000 gain on the sale of securities which is included in non-interest income, and partially offset by a loss of $168,000 on the termination of a swap used as an interest rate hedge and which is reported in non-interest expense. The third quarter results also reflect the Bank's continued aggressive response to the COVID-19 pandemic which included a significant increase in the Bank's allowance for loan loss. While non-performing loans to total loans remains very low at 0.03% and the annual charge-off rate for loans during the first nine months of 2020 was also low at 0.02% of average loans, the Bank has prudently built up its allowance for loan losses by $452,000 during the third quarter and by $1,694,000 during the first nine months of 2020. The adjustments were determined by performing an industry-sector analysis of the Bank's loan portfolio and providing additional reserve on those sectors most at risk. This sector analysis was further informed by an analysis of the loan modifications made by the Bank since the beginning of the pandemic, as allowed for under the CARES Act. Loans with payment deferments granted during the pandemic represented 13% of total loans while loans in current deferments at quarter-end represented 6% of total loans.