ODNB Financial Corporation, the holding company for Old Dominion National Bank and its Centre 1st Bank division, reported financial results for the quarter ended September 30, 2026. The company reported net income of $1.7 million for the third quarter of 2026, compared to $1.6 million in the prior quarter and $2.2 million in the third quarter of 2025. For the nine months ended September 30, 2026, net income totaled $7.0 million, an increase of 18.3% from $5.9 million for the prior-year period.
Net interest income increased to $13.0 million in the third quarter of 2026, a rise of 10.5% from the prior quarter and 27.3% from the third quarter of 2025. This growth drove a net interest margin expansion to 3.10% in the third quarter of 2026, compared to 2.92% in the prior quarter and 2.84% in the third quarter of 2025. The company noted that deposit mix improved as time deposits declined $117.9 million, or 30.6%, while non-interest bearing demand, NOW and interest-bearing demand, and money market and savings deposits increased.
Gross loans totaled $1.40 billion at September 30, 2026, increasing $36.7 million, or 10.7% annualized, during the quarter and $134.5 million, or 10.6%, from September 30, 2025. Total deposits were $1.44 billion at September 30, 2026, increasing $196.3 million, or 15.8%, from September 30, 2025. The company reduced its total cost of deposits by 46 basis points from 2.93% in the third quarter of 2025 to 2.47% in the current quarter.
Asset quality remained stable, with nonaccrual loans totaling $12.3 million, or 0.88% of total gross loans, at September 30, 2026. The allowance for credit losses totaled $13.0 million, or 0.93% of total gross loans. Regulatory capital ratios remained well above levels required to be considered "well capitalized," with a Tier 1 leverage ratio of 11.55%, a Tier 1 risk-based capital ratio of 13.80%, and a total risk-based capital ratio of 14.74% at September 30, 2026.
Book value per share increased to $13.20 at September 30, 2026, compared to $13.13 at June 30, 2026 and $12.36 at September 30, 2025. The company continues to prepare for the completion of its strategic merger with National Capital Bancorp, Inc., which was approved by the Bureau of Financial Institutions of the Virginia State Corporation Commission on October 28, 2026.
