Access National Reports 33% Increase In Third Quarter Earnings, Dividend Increased

Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank, reported record third quarter net income of $4.1 million, a $1.0 million increase over the $3.1 million recorded in the third quarter of 2011. This represents the company’s 5 th consecutive quarterly earnings in excess of $3 million and its 49 th consecutive quarterly profit over its 12¾ year history. Net income per diluted common share was $0.40, an increase of 33.3% over the $0.30 reported in the third quarter of 2011.

Based on record earnings, strong capital and favorable outlook, the Board of Directors declared a cash dividend of $0.08 per share for holders of record as of November 07, 2012 and payable on November 23, 2012. This dividend represents a 2 cent increase from the prior quarter and a 7 cent cumulative increase over the past 2 years.

Net income increased 42% for the nine months ended September 30, 2012 totaling $11.5 million compared to $8.1 million for the same period in 2011. Net interest margin remained steady at 3.95% for the nine month period ended September 30, 2012 as compared to 3.85% for the same period in 2011. Diluted earnings per share were $1.11 compared to $0.78 in 2011.

Annualized return on average assets was 1.98% for the third quarter of 2012 compared to 1.69% for the same quarter of 2011. Annualized return on average equity was 17.93% for the quarter ended September 30, 2012 compared to 15.92% for the same period last year.

Total assets amounted to $849.3 million compared to $809.8 million at December 31, 2011. The increase in assets is mainly attributable to an increase in both loans held for investment and investment securities, and was funded by a significant increase in core deposits.

Total deposits at September 30, 2012 increased $60.8 million or 9.42% from December 31, 2011. As a result of management’s continued focus on expanding business banking relationships, noninterest bearing deposits increased $78.9 million or 69.31% from December 31, 2011 and comprised 27.32% of the deposit portfolio, up from 17.66% at December 31, 2011. The overall increase in deposits allowed the Company to decrease its borrowings which, coupled with other factors, contributed to the increase in net interest margin.

Non-performing assets (NPAs) decreased to $3.6 million or 0.43% of total assets, down from $5.2 million or 0.62% of assets at June 30, 2012. The Corporation did not have other real estate owned at September 30, 2012. The allowance for loan losses totaled $12.0 million or 2.04% of total loans held for investment as of September 30, 2012.

Book value per common share increased 15.2% at September 30, 2012 to $9.03, compared to $7.84 at September 30, 2011. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 10.92% at September 30, 2012 and continued to exceed standards of being “Well Capitalized” as set forth under banking regulations.

Access National Corporation is the parent company of Access National Bank, an independent, nationally chartered bank serving the business community of the greater Washington 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
                         
    September 30,     December 31,     September 30,
2012 2011 2011
(In Thousands)     (Unaudited)             (Unaudited)
 
ASSETS
 
Cash and due from banks $ 13,090 $ 5,362 $ 10,909
 
Interest-bearing balances and federal funds sold 43,360 38,547 32,017
 
Investment securities:
Available-for-sale, at fair value 36,719 45,837 55,920
Held-to-maturity, at amortized cost (fair value of $65,454, $39,978 and $9,978)   64,939   39,987   10,000
Total investment securities 101,658 85,824 65,920
 
Restricted Stock, at amortized cost 2,824 3,665 4,367
 
Loans held for sale - at fair value 84,011 95,126 96,764
 

Loans held for investment net of allowance for loan losses of $12,048, $11,738 and $11,537, respectively
578,571 557,662 531,045
 
Premises, equipment and land, net 8,425 8,671 8,720
 
Other assets 17,409 14,901 15,725
           
Total assets $ 849,348 $ 809,758 $ 765,467
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
LIABILITIES
Noninterest-bearing deposits $ 192,813 $ 113,885 $ 115,110
 
Savings and interest-bearing deposits 193,840 182,005 167,673
 
Time deposits   319,129   349,123   314,119
 
Total deposits 705,782 645,013 596,902
 
Short-term borrowings 26,770 59,904 65,015
 
Long-term borrowings 2,661 4,821 5,375
 
Subordinated debentures 6,186 6,186 6,186
 
Other liabilities and accrued expenses 15,167 11,019 11,813
           
Total Liabilities   756,566   726,943   685,291
 
SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,277,267, 10,192,649 and 10,224,742 shares, respectively
8,582 8,511 8,538
 
Additional paid in capital 16,896 16,716 16,900
 
Retained earnings 67,189 57,529 54,637
 
Accumulated other comprehensive income (loss), net 115 59 101
           
Total shareholders' equity   92,782   82,815   80,176
           
Total liabilities and shareholders' equity $ 849,348 $ 809,758 $ 765,467
                         
 

 
Access National Corporation
Consolidated Statement of Operations
 
    Three Months Ended     Nine Months Ended
September 30, 2012 September 30, 2012     September 30, 2011
(In Thousands Except for Share Data)     (unaudited)     (unaudited)     (unaudited)
 
INTEREST INCOME
Interest and fees on loans $ 8,632 $ 25,672 $ 24,168
 
Interest on federal funds sold and bank balances 12 62 97
 
Interest on securities   528     1,791     1,710  
Total interest income 9,172 27,525 25,975
 
INTEREST EXPENSE
Interest on deposits 1,089 3,512 3,925
 
Interest on other borrowings   104     434     1,430  
Total interest expense   1,193     3,946     5,355  
Net interest income 7,979 23,579 20,620
 
Provision for loan losses   150     1,340     936  
Net interest income after provision for loan losses 7,829 22,239 19,684
 
NONINTEREST INCOME
Service charges and fees 150 487 519
 
Gain on sale of loans 17,479 43,161 24,719
 
Other Income   (4,904 )   (5,090 )   (597 )
Total noninterest income 12,725 38,558 24,641
 
NONINTEREST EXPENSE
Salaries and benefits 8,017 23,826 18,220
 
Occupancy and equipment 711 1,941 1,982
 
Other operating expense   5,336     16,471     11,606  
Total noninterest expense   14,064     42,238     31,808  
Income before income tax 6,490 18,559 12,517
 
Income tax expense   2,358     7,099     4,446  
NET INCOME $ 4,132   $ 11,460   $ 8,071  
 
Earnings per common share:
Basic $ 0.40   $ 1.12   $ 0.78  
Diluted $ 0.40   $ 1.11   $ 0.78  
 
Average outstanding shares:
Basic 10,271,246 10,236,472 10,303,840
Diluted 10,389,441 10,350,833 10,365,793
                               
 

               
Performance and Capital Ratios
                                         
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
(Dollars In Thousands)     2012     2011     2012     2011
 
Return on average assets (annualized) 1.98 % 1.69 % 1.86 % 1.46 %
Return on average equity (annualized) 17.93 % 15.92 % 17.19 % 14.20 %
Net interest margin 3.95 % 4.02 % 3.95 % 3.85 %
Efficiency ratio - Bank only 54.26 % 52.38 % 53.03 % 52.61 %
Total average equity to earning assets 11.40 % 10.90 % 11.16 % 10.62 %
 
Averages
Assets $ 835,130 $ 738,925 $ 820,292 $ 736,426
Loans held for investment 586,060 527,258 578,014 510,177
Loans held for sale 87,355 49,641 74,929 36,068
Interest-bearing deposits & federal funds sold 30,303 50,509 36,108 53,002
Investment securities 104,901 90,258 107,545 114,517
Earning assets 808,619 717,666 796,596 713,764
Interest-bearing deposits 529,086 454,558 532,692 442,822
Total deposits 689,873 562,304 669,306 537,119
Repurchase agreements & federal funds purchased 26,946 37,627 26,717 36,935
Commercial paper & other short term borrowings 5,557 40,117 12,841 66,696
Long-term borrowings 9,135 12,099 9,835 12,648
Equity $ 92,206 $ 78,212 $ 88,897 $ 75,774
 
Banking segment - income before taxes $ 3,736 $ 2,982 $ 10,478 $ 10,456
Mortgage segment - income before taxes $ 3,318 $ 2,369 $ 9,865 $ 3,828
Other segments - income before taxes $ (564 ) $ (531 ) $ (1,784 ) $ (1,767 )
Mortgage loan originations and brokered loans $ 284,326 $ 236,566 $ 807,952 $ 551,883
Allowance for losses on mortgage loans sold $ 4,802 $ 2,395 $ 4,802 $ 2,395
 
Book value per common share $ 9.03 $ 7.84 $ 9.03 $ 7.84
                                         
 
               
Composition of Loan Portfolio
                                 
      September 30, 2012     December 31, 2011
(Dollars In Thousands)     Amount    

Percentage of

Total
    Amount    

Percentage of

Total
 
Commercial real estate - owner occupied $ 182,825 30.95 % $ 171,599 30.14 %
Commercial real estate - non-owner occupied 104,420 17.68 104,976 18.44
Residential real estate 137,304 23.25 128,485 22.56
Commercial 134,475 22.77 131,816 23.15
Real estate construction 27,836 4.71 29,705 5.22
Consumer   3,759     0.64     2,819     0.50  
Total loans $ 590,619 100.00 % $ 569,400 100.00 %
Less allowance for loan losses   12,048   11,738
$ 578,571 $ 557,662
                                 
 

       
Composition of Deposits                
    September 30, 2012   December 31, 2011
Percentage of Percentage of
(Dollars In Thousands)   Amount   Total   Amount   Total
Noninterest bearing deposits $ 192,813 27.32 % $ 113,885 17.66 %
Interest-bearing demand deposits 83,153 11.78 59,798 9.27
Savings and money market 100,143 14.19 121,252 18.80
CDARS-reciprocal deposits 177,443 25.14 192,326 29.82
Brokered deposits 28,209 4.00 31,228 4.84
Time deposits   124,021   17.57       126,524   19.62  
Total Deposits $ 705,782   100.00 %   $ 645,013   100.00 %
                         
 
         
Asset Quality Trend Profile
                     
Nine Months Six Months Three Months Nine Months Twelve Months
Ended Ended Ended Ended Ended
(Dollars In Thousands)  

September 30, 2012
  June 30, 2012   March 31, 2012   September 30, 2011   December 31, 2011
 
Total assets $ 849,348 $ 841,709 $ 804,755 $ 765,467 $ 809,758
Total loans held for investment $ 590,619 $ 582,600 $ 573,315 $ 542,582 $ 569,400
 
Allowance for loan losses - beginning balance $ 11,738 $ 11,738 $ 11,738 $ 10,527 10,527
Charge offs (1,829 ) (1,425 ) (984 ) (944 ) (1,232 )
Recoveries   799       528       469       1,019       1,295  
Net charge offs (1,030 ) (897 ) (515 ) 75 63
Provision for loan losses   1,340       1,190       718       935       1,149  
Allowance for loan losses - ending balance $ 12,048     $ 12,031     $ 11,941     $ 11,537       11,738  
 
Allowance for loan losses/loans held for investment 2.04 % 2.06 % 2.08 % 2.13 % 2.06 %
 
Delinquent 30 - 90 days $ - $ 614 $ - $ 4,226 271
Percentage of loans delinquent 0.00 % 0.11 % 0.00 % 0.78 % 0.05 %
 
Non-accrual loans $ 3,626 $ 5,209 $ 5,350 $ 7,077 $ 6,703
OREO $ - $ - $ - $ 590 $ -
Total NPA $ 3,626 $ 5,209 $ 5,350 $ 7,667 $ 6,703
NPA to total assets 0.43 % 0.62 % 0.66 % 1.00 % 0.83 %
Allowance for loan losses/NPA 332.27 % 230.97 % 223.20 % 150.48 % 175.12 %
 
OREO Expense $ 1 $ 1 $ 2 $ 420 $ 523
Gain on Sale of OREO $ -     $ -     $ -     $ 1,325     $ 1,452  
OREO expense net $ 1     $ 1     $ 2     $ (905 )   $ (929 )
 
Allowance for losses on mortgage loans sold $ 4,802 $ 4,216 $ 2,874 $ 2,395 $ 2,616
Provision for losses on mortgage loans sold $ 2,186 $ 1,600 $ 258 $ 527 $ 966
                     
 

Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities
Three Months Ended
                         
    September 30, 2012   September 30, 2011
  Average   Income /   Yield /   Average   Income /   Yield /
    Balance   Expense   Rate   Balance   Expense   Rate
(Dollars In Thousands)
Assets:
Interest earning assets:
Securities $ 104,901 $ 528 2.01 % $ 90,258 $ 497 2.20 %
Loans held for sale 87,355 818 3.75 % 49,641 591 4.76 %
Loans(1) 586,060 7,814 5.33 % 527,258 7,763 5.89 %
Interest-bearing balances and federal funds sold   30,303       12   0.16 %   50,509       25   0.20 %
Total interest earning assets 808,619 9,172 4.54 % 717,666 8,876 4.95 %
Noninterest earning assets:
Cash and due from banks 12,110 10,373
Premises, land and equipment 8,486 8,747
Other assets 18,018 13,374
Less: allowance for loan losses   (12,103 )   (11,235 )
Total noninterest earning assets   26,511     21,259  
Total Assets $ 835,130   $ 738,925  
 
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
Interest-bearing demand deposits $ 70,637 $ 35 0.20 % $ 64,155 $ 85 0.53 %
Money market deposit accounts 118,330 115 0.39 % 105,718 146 0.55 %
Savings accounts 2,600 1 0.15 % 2,962 1 0.14 %
Time deposits   337,519       938   1.11 %   281,723       1,003   1.42 %
Total interest-bearing deposits 529,086 1,089 0.82 % 454,558 1,235 1.09 %
Borrowings:
FHLB Advances 5,557 11 0.79 % 2,935 3 0.41 %
Securities sold under agreements to repurchase and federal funds purchased 26,946 9 0.13 % 37,627 17 0.18 %
Other short-term borrowings - - 0.00 % 7,183 9 0.50 %
FHLB Long-term borrowings 2,949 28 3.80 % 5,913 54 3.65 %
FDIC Term Note - - 0.00 % 29,999 299 3.99 %
Subordinated Debentures   6,186       56   3.62 %   6,186       53   3.43 %
Total borrowings   41,638       104   1.00 %   89,843       435   1.94 %
Total interest-bearing deposits and borrowings 570,724 1,193 0.84 % 544,401 1,670 1.23 %
Noninterest-bearing liabilities:
Demand deposits 160,787 107,746
Other liabilities   11,413     8,566  
Total liabilities 742,924 660,713
Shareholders' Equity   92,206     78,212  
Total Liabilities and Shareholders' Equity: $ 835,130   $ 738,925  
 
Interest Spread(2) 3.70 % 3.72 %
 
Net Interest Margin(3) $ 7,979   3.95 % $ 7,206   4.02 %
                         
 
(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.
 

Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities
Nine Months Ended
                         
    September 30, 2012   September 30, 2011
  Average   Income /   Yield /   Average   Income /   Yield /
    Balance   Expense   Rate   Balance   Expense   Rate
(Dollars In Thousands)
Assets:
Interest-earning assets:
Securities $ 107,545 $ 1,791 2.22 % $ 114,517 $ 1,710 1.99 %
Loans held for sale 74,929 2,179 3.88 % 36,068 1,282 4.74 %
Loans(1) 578,014 23,493 5.42 % 510,177 22,886 5.98 %
Interest-bearing balances and federal funds sold   36,108       62   0.23 %   53,002       97   0.24 %

Total interest-earning assets
796,596 27,525 4.61 % 713,764 25,975 4.85 %
Noninterest-earning assets:
Cash and due from banks 10,159 11,297
Premises, land and equipment 8,563 8,847
Other assets 16,926 13,394
Less: allowance for loan losses   (11,952 )   (10,876 )
Total noninterest-earning assets   23,696     22,662  
Total Assets $ 820,292   $ 736,426  
 
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
Interest-bearing demand deposits $ 65,805 $ 126 0.26 % $ 37,153 $ 138 0.50 %
Money market deposit accounts 122,543 385 0.42 % 112,893 496 0.59 %
Savings accounts 2,612 3 0.15 % 2,905 4 0.18 %
Time deposits   341,732       2,998   1.17 %   289,871       3,287   1.51 %
Total interest-bearing deposits 532,692 3,512 0.88 % 442,822 3,925 1.18 %
Borrowings:
FHLB Advances 8,023 39 0.65 % 11,308 42 0.50 %
Securities sold under agreements to repurchase and federal funds purchased 26,717 28 0.14 % 36,935 53 0.19 %
Other short-term borrowings - - 0.00 % 25,389 114 0.60 %
FHLB Long-term borrowings 3,649 100 3.65 % 6,462 171 3.53 %
FDIC Term Note 4,818 98 2.71 % 29,999 892 3.96 %
Subordinated Debentures   6,186       169   3.64 %   6,186       158   3.41 %
Total borrowings   49,393       434   1.17 %   116,279       1,430   1.64 %
Total interest-bearing deposits and borrowings 582,085 3,946 0.90 % 559,101 5,355 1.28 %
Noninterest-bearing liabilities:
Demand deposits 136,614 94,297
Other liabilities   12,696     7,254  
Total liabilities 149,310 101,551
Shareholders' Equity   88,897     75,774  
Total Liabilities and Shareholders' Equity: $ 820,292   $ 736,426  
 
Interest Spread(2) 3.70 % 3.58 %
 
Net Interest Margin(3) $ 23,579   3.95 % $ 20,620   3.85 %
                         
 
(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.
 

Copyright Business Wire 2010

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