Access National Corporation
(NASDAQ: ANCX), holding company for Access National Bank, reported second quarter net income of $1.7 million compared to $1.2 million recorded in the first quarter of 2010. This represents the company’s 40
consecutive quarterly profit over its 10.5 year history. Earnings per diluted share were $0.16 for the quarter ended June 30, 2010, compared to $0.11 per diluted share in the first quarter of 2010. Net income for the six months ended June 30, 2010 totaled $2.9 million or $0.27 per diluted share, compared to net income of $5.4 million or $0.52 per diluted share for the first six months of 2009. The decrease in earnings is primarily due to a $14.7 million decrease in gains on the sale of loans as a result of a 64.4% decrease in mortgage loan originations.
Loans held for investment totaled $468.9 million at June 30, 2010 compared to $486.6 million at December 31, 2009 as loan demand remains soft and management has a continuing guarded economic outlook. While total loans held for investment and all real estate loan categories have decreased in recent periods, the portfolio of commercial and industrial loans to local operating businesses have increased 4% over the prior quarter.
Investment securities have increased from $47.8 million at December 31, 2009 to $128.0 million at June 30, 2010 as a result of deposit growth and the lack of loan demand. The securities purchased are all government agencies, predominantly with maturities of five years or less.
Total deposits have increased from $466.6 million at December 31, 2009 to $608.1 million at June 30, 2010. Noninterest-bearing deposit balances increased 12.22% or $8.5 million over the six month period as the bank continues to grow its portfolio of local operating businesses with core operating accounts.
Income before taxes from the banking segment totaled $2.6 million for the second quarter of 2010, up from $1.5 million in the first quarter of 2010. Income before taxes from the mortgage segment decreased from $778 thousand in the first quarter of 2010 to $575 thousand for the quarter ended June 30, 2010.