Access National Corporation (NASDAQ: ANCX), holding company for Access National Bank, reported first quarter net income of $1.2 million compared to a record $2.7 million recorded in the first quarter of 2009. This represents the company’s 39 th consecutive quarterly profit. Earnings per diluted share were $0.11 for the quarter ended March 31, 2010, compared to $0.19 per diluted share in the fourth quarter of 2009 and $0.26 in the first quarter of 2009. The decrease in earnings is primarily due to an $8.5 million decrease in gains on sale of loans as a result of a 66.1% decrease in mortgage loan originations. Earnings for the first quarter of 2010 were adversely impacted by $557 thousand in expenses associated with other real estate owned.

Income before taxes from the banking segment increased 44.4% to $1.5 million for the first quarter of 2010 compared to $1.0 million for the first quarter of 2009. Income before taxes from the mortgage segment decreased from approximately $4.0 million for the first quarter of 2009 to $778 thousand for the first quarter of 2010.

Return on Average Assets for the first quarter of 2010 annualized was 0.74% compared to 1.45% for the same period in 2009. Return on average equity annualized was 7.0% for the first quarter of 2010 compared to 17.7% in the prior year. Book value per common share was $6.52 at March 31, 2010 compared to $5.92 at March 31, 2009, an increase of 10.1%.

Assets totaled $637.4 million at March 31, 2010 compared to $755.2 million at March 31, 2009. The decrease in total assets is due to a decrease of $54.4 million in cash and due from banks and a $60.0 million decrease in total loans.

Deposits totaled $460.2 million at March 31, 2010 compared with $546.6 million at March 31, 2009, a decrease of $86.4 million. The decrease is due to fluctuations in commercial non-interest bearing balances and deliberate reductions in rate sensitive time deposits.

Net interest margin for the quarter ended March 31. 2010 was 3.58% improved from 3.24% for the first quarter of 2009 and 3.57% for the fourth quarter in 2009.

Non-performing assets (NPAs) at March 31, 2010 totaled approximately $13.5 million or 2.12% of total assets and are comprised of non-accrual loans totaling $9.4 million and OREO of $4.1 million. As of the date of this release, approximately $3.2 million in NPAs have been resolved or are in process of resolutions.

At March 31, 2010 loans held for investment decreased approximately $15.9 million from March 31, 2009 primarily due to a decline in quality loan demand. Loans held for sale decreased $44.1 million as mortgage loan originations declined from $ 439.1 million in the first quarter of 2009 to $148.9 million for the first quarter of 2010.

Access National Corporation and its subsidiary bank continue to exceed standards of being “Well Capitalized” as defined under banking regulations. The ratio of total equity to total assets at March 31, 2010 was 10.86% compared to 8.07% at March 31, 2009.

Access National Corporation is the parent company of Access National Bank, an independent, nationally chartered bank serving the business community of the greater DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. Shares of Access National Corporation are traded on the NASDAQ Global Market under the symbol "ANCX".

This press release contains “forward-looking statements” within the meaning of the federal securities laws. These statements may be identified as “may,” “could,” “expect,” “believe,” anticipate,” “intend,” “plan” or variations thereof. These forward-looking statements may contain information related to those matters such as the Company’s intent, belief, or expectation with respect to matters such as financial performance. Such statements are necessarily based on assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company’s operations and business environment, which are difficult to predict and beyond control of the company. Such risks and uncertainties could cause the actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of certain risks and uncertainties associated with forward-looking statements, please refer to the Company’s Annual Report on Form 10-K and other SEC filings.
     
Access National Corporation
Consolidated Balance Sheet
 

March 31,

December 31,

March 31,

2010

2009

2009
(In Thousands)      
 
ASSETS
 
Cash and due from banks $ 4,346 $ 5,965 $ 6,483
 
Interest bearing balances and federal funds sold 14,651 25,256 66,877
 
Securities available for sale - at fair value 77,687 47,838 83,802
 
Loans held for sale - at fair value 49,705 76,232 93,829
 
Loans held for investment
net of allowance for loan losses of $9,256, $9,127
and $7,641, respectively 460,472 477,437 477,982
 
Premises, equipment and land 8,694 8,759 9,081
 
Other assets 21,826 25,392 17,181
     
Total assets $ 637,381   $ 666,879 $ 755,235
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
LIABILITIES
Non-interest bearing deposits $ 68,058 $ 69,782 $ 114,316
 
Savings and interest bearing deposits 154,087 138,988 91,472
 
Time deposits   238,055     257,875   340,850
 
Total deposits 460,200 466,645 546,638
 
Short-term borrowings 52,923 64,249 76,999
 
Long-term borrowings 40,360 46,330 54,240
 
Subordinated debentures 6,186 6,186 6,186
 
Other liabilities and accrued expenses 8,495 15,691 10,261
     
Total Liabilities   568,164     599,101   694,324
 
SHAREHOLDERS' EQUITY
Common stock $0.835 par value; 60,000,000 authorized;
issued and outstanding, 10,615,313, 10,537,428
and 10,294,229 shares, respectively 8,864 8,799 8,596
 
Surplus 18,931 18,552 17,611
 
Retained earnings 41,487 40,377 33,719
 
Accumulated other comprehensive (loss) income (65 ) 50 985
     
Total shareholders' equity   69,217     67,778   60,911
     
Total liabilities and shareholders' equity $ 637,381   $ 666,879 $ 755,235
 
 
Access National Corporation
Consolidated Statement of Operations
     
Three Months Ended
March 31, December 31, March 31,
(In Thousands Except for Share Data) 2010 2009 2009
 
INTEREST INCOME
Interest and fees on loans $ 7,872 $ 8,416 $ 8,667
 
Interest on federal funds sold and bank balances 37 42 32
 
Interest on securities   350   485   980
Total interest income 8,259 8,943 9,679
 
INTEREST EXPENSE
Interest on deposits 1,968 2,281 3,081
 
Interest on other borrowings   706   797   855
Total interest expense   2,674   3,078   3,936
Net interest income 5,585 5,865 5,743
 
Provision for loan losses   198   1,248   1,369
Net interest income after provision for loan losses 5,387 4,617 4,374
 
NON-INTEREST INCOME
Service charges and fees 160 135 134
 
Gain on sale of loans 5,240 10,995 13,789
 
Other Income   623   1,701   1,237
Total non-interest income 6,023 12,831 15,160
 
NON-INTEREST EXPENSE
Salaries and benefits 5,252 6,678 7,505
 
Occupancy and equipment 684 602 632
 
Other operating expense   3,567   7,229   6,743
Total non-interest expense   9,503   14,509   14,880
Income before income tax 1,907 2,939 4,654
 
Income tax expense   691   892   1,990
NET INCOME   1,216 $ 2,047 $ 2,664
 
Earnings per common share:
Basic $ 0.12 $ 0.19 $ 0.26
Diluted $ 0.11 $ 0.19 $ 0.26
 
Average outstanding shares:
Basic 10,572,017 10,500,700 10,267,385
Diluted 10,589,506 10,529,169 10,311,653
 
           

Financial Highlights
 

 

Composition of Deposits

 

(Dollars In Thousands)
March 31, 2010 December 31,2009 March 31,2009
Amount

Percentage of Total
Amount

Percentage of Total
Amount

Percentage of Total
 
 
Demand deposits $ 68,058 14.79% $ 69,782 14.95% $ 114,317 20.91%
Interest-bearing demand deposits 28,378 6.17 25,918 5.56 14,654 2.68
Savings and money market 100,688 21.88 103,070 22.09 76,817 14.05
Brokered deposits 76,570 16.64 129,660 27.79 146,621 26.82
Time deposits   186,506 40.52   138,215 29.61   194,229 35.54
Total Deposits $ 460,200 100.00% $ 466,645 100.00% $ 546,638 100.00%
 
           

 

Composition of Loan Portfolio

 

(Dollars in Thousands)
March 31, 2010 December 31, 2009 March 31, 2009
Amount

Percentageof Total
Amount

Percentage of Total
Amount

Percentage of Total
 
Commercial $ 72,193 15.37% $ 72,628 14.93% $ 64,714 13.33%
Commercial real estate 215,969 45.98 220,301 45.28 223,090 45.94
Real estate construction 39,910 8.50 41,508 8.53 45,755 9.42
Residential real estate 140,195 29.85 150,792 30.99 150,684 31.03
Consumer and other   1,461 0.30   1,335 0.27   1,380 0.28
Total loans $ 469,728 100.00% $ 486,564 100.00% $ 485,623 100.00%
Less allowance for loan losses   9,256   9,127   7,641
$ 460,472 $ 477,437 $ 477,982
 
 

Financial Highlights (continued)
 
    Performance and Capital Ratios
(Dollars In Thousands)
Three Months Ended
March 31,   December 31,   March 31,
2010 2009 2009
 
Return on average assets 0.74% 1.19% 1.45%
Return on average equity 7.01% 12.07% 17.67%
Net interest margin 3.58% 3.57% 3.24%
Efficiency ratio - Bank only 71.71% 60.41% 58.62%
Total equity to assets 10.86% 10.16% 8.07%
Banking segment - income before taxes $ 1,461 $ 1,247 $ 1,012
Mortgage segment - income before taxes $ 778 $ 2,003 $ 3,952
Other segments - income before taxes $ (332) $ (311) $ (310)
Other segments - income before taxes $ 148,941 $ 311,326 $ 439,103
Other segments - income before taxes $ 3,768 $ 3,332 $ 1,953
 

Financial Highlights (continued)
 
Yield on Average Earning Assets and Rates on Average Interest Bearing Liabilities
 
Three Month Period Ended
March 2010     December 2009     March 2009
Average   Income /   Yield / Average   Income /   Yield / Average   Income /   Yield /
Balance   Expense   Rate Balance   Expense   Rate Balance   Expense   Rate
(Dollars In Thousands)
Assets:
Interest earning assets:

Securities
$ 53,073 $ 350 2.64% $ 55,333 $ 485 3.51% $ 78,135 $ 980 5.02%

Loans(1)
508,241 7,872 6.20% 543,239 8,416 6.20% 553,531 8,667 6.26%
Interest bearing balances   62,813     37   0.24%   59,475     42   0.28%   76,785     32   0.17%
Total interest earning assets

624,127
8,259 5.29%

658,047
8,943 5.44%

708,451
9,679 5.46%
Non-interest earning assets:
Cash and due from banks 7,205 7,947 5,470
Premises, land and equipment 8,731 12,360 13,620
Other assets 23,930 16,023 13,912
Less: allowance for loan losses   (9,371)   (8,500)   (7,695)
Total non-interest earning assets   30,495   27,830   25,307
Total Assets

$

654,622

$

685,877

$

733,758
 
Liabilities and Shareholders' Equity:
Interest bearing liabilities:
Interest bearing demand deposits $ 23,484 $ 43 0.73% $ 27,168 $ 55 0.81% $ 11,743 $ 27 0.92%
Money market deposit accounts 129,783 393 1.21% 108,792 392 1.44% 71,197 240 1.35%
Savings accounts 4,135 10 0.97% 4,512 12 1.06% 4,663 17 1.46%
Time deposits   243,516     1,522   2.50%   276,849     1,822   2.63%   366,079     2,797   3.06%
Total interest bearing deposits

400,918
1,968 1.96% 417,321 2,281 2.19%

453,682
3,081 2.72%
FHLB Advances 17,708 203 4.59% 22,285 238 4.27% 23,859 221 3.71%
Securities sold under agreements to repurchase and fed fund purchased 24,356 28 0.46% 20,780 25 0.48% 26,695 38 0.57%
Other short-term borrowings 15,067 34 0.90% 17,023 41 0.96% 24,038 57 0.95%
FHLB long-term borrowings 12,645 94 2.97% 17,282 141 3.26% 34,623 305 3.52%
FDIC term note 29,997 295 3.93% 29,997 299 3.99% 16,331 171 4.19%
Subordinated Debentures   6,186     52   3.36%   6,186     53   3.43%   6,186     63   4.07%
Total interest-bearing liabilities  

506,877
    2,674   2.11%  

530,874
    3,078   2.32%  

585,414
    3,936   2.69%
Non-interest bearing liabilities:
Demand deposits 67,291 79,085 79,705
Other liabilities   11,068   8,058   8,346
Total liabilities

585,236

618,017

673,465
Shareholders' Equity   69,386   67,860   60,293
Total Liabilities and Shareholders' Equity:

$

654,622

$

685,877

$

733,758
 

Interest spread(2)
3.18% 3.12% 2.78%
 

Net interest margin(3)
$ 5,585   3.58% $ 5,865   3.57% $ 5,743   3.24%
 
(1) Loans placed on nonaccrual status are included in loan balances

(2) Interest spread is the average yield earned on earning assets, less the average rate incurred on interest bearing liabilities.

(3) Net interest margin is net interest income, expressed as a percentage of average earning assets.

 
 

Financial Highlights (continued)
 
Summary of Non-Performing Assets March 31, 2010

(In Thousands)

Non-Performing Loans
CRE - 4 Office Condos - No.Va. one borrower - Listed for sale $ 2,251
CRE - Owner occupied Industrial Building - Chantilly VA - Bankruptcy 3,157
CRE - Office condo - Ashburn VA - Sold & settled in April* 286
CRE - Church - Suburban MD - Listed for sale 690
CRE - Industrial land - Washington D.C. - Listed for sale or lease 379
SFR Construction - Leesburg VA - Contract Pending* 1,488
SFR - No Va - Transferred to REO in April 430
SFR - Suburban MD - Listed for sale 599
SFR Construction - NC - Lot listed for sale 49
C&I - 3 Loans to operating businesses in Northern VA   118
Total Non-Performing Loans $ 9,447
 

Other Real Estate Owned
CRE - Office building - Baltimore MD - Listed for sale $ 2,273
CRE - Office, Manassas VA - Contract Pending* 1,440
SFR - Suburban MD - Listed for sale   360
Total Other Real Estate Owned $ 4,073
 

Total Non-Performing Assets
$ 13,520
 
* Completed and pending resolutions total $ 3,214
     

Financial Highlights (continued)
 

Asset Quality Trend Profile
 
Three Months Twelve Months Twelve Months
Ended Ended Ended
(Dollars in Thousands) March 31, 2010 December 31, 2009 December 31, 2008
 
Total assets $ 637,381 $ 666,879 $ 702,324
Total loans held for investment $ 469,728 $ 486,564 $ 485,929
 
Allowance for Loan Losses - beginning balance $ 9,127 $ 7,462 $ 7,462
Charge Offs $ (392 ) $ (5,310 ) $ (5,560 )
Recoveries $ 324 $ 911 $ 137
Net Charge Offs $ (68 ) $ (4,399 ) $ (5,423 )
Provision for Loan Losses $ 198 $ 6,064 $ 5,423
Allowance for Loan Losses - ending balance $ 9,256 $ 9,127 $ 7,462
 
Allowance for loan losses/loans held for investment 1.97 % 1.88 % 1.53 %
 
Delinquent 30 - 90 days $ 845 $ 1,267 $ 6,459
Percentage of Loans Delinquent 0.18 % 0.26 % 1.33 %
 
Non-accrual loans $ 9,447 $ 7,032 $ 2,875
OREO $ 4,073 $ 5,111 $ 4,455
Total non-performing assets (NPAs) $ 13,520 $ 12,143 $ 7,330

NPAs to total assets
2.12 % 1.82 % 1.04 %
 
Allowance for Loan Losses/NPAs 68.46 % 75.16 % 101.80 %
OREO expense $ 459 $ 1,497 $ 22
Gain/(loss) on sale of REO $ (98 ) $ 20 $ 25
 
   
Stock Information
   
Three months ended
March 31, December 31, March 31,
2010   2009   2009
 
 
Market price of common stock:
High $ 6.77 $ 6.85 $ 5.17
Low $ 5.54 $ 5.86 $ 3.80
Close $ 6.13 $ 5.90 $ 4.60
Book value per share $ 6.52 $ 6.43 $ 5.92
Number of common shares outstanding 10,615,313 10,537,428 10,294,229

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX